Cantor Fitzgerald analyst Andres Sheppard initiates coverage on PureCycle Technologies, Inc. (NASDAQ:PCT) with an Overweight rating and a price forecast of $14.

According to the analyst, the company enjoys a differentiated technology and first-mover advantage, along with a large total addressable market (TAM) and the ability to scale up. It also benefits from a globally patented purification polypropylene recycling technology developed in partnership with Procter & Gamble Company.

This FDA-approved technology employs a unique process that effectively removes odor and color from plastic waste, the analyst notes.

The analyst highlights that PureCycle plans to sell its UPR resin to a diverse array of customers across various industries, including consumer goods manufacturers and food and beverage producers.

Also Read: Netflix 'Should Continue To Outperform': 6 Analysts On Streaming Stock's Q3 Earnings

Sheppard sees that the company's first production line will reach near full capacity by 2025, with revenue reporting expected to begin in the second half of 2024.

The analyst mentions that the company is currently focused on expanding its second purification facility in Augusta, Georgia, which is expected to feature up to eight purification lines, each capable of producing approximately 130 million pounds annually.

The facility is projected to be operational by 2027, and Sheppard sees this will serve as a significant catalyst for growth.

Additionally, on September 11, the company strengthened its balance sheet by raising $90 million in gross proceeds.

Price Action: PCT shares are trading higher by 5.26% to $10.51 at last check Friday.

• Goldman Sachs Highlights 20 Top Short-Squeeze Opportunities For Q3 Earnings Season