Maxim Group analyst Tate Sullivan maintained a Buy rating on 374Water (SCWO – Research Report) yesterday and set a price target of $2.50.
Tate Sullivan has given his Buy rating due to a combination of factors including the growth potential in the water treatment industry and 374Water’s (SCWO) specific opportunities. Despite lowering the price target to $2.50 based on a revised 10-year discounted cash flow (DCF) analysis, Sullivan remains optimistic about the company’s prospects. The analysis factors in a 20% discount rate and a 3% perpetual growth rate, indicating a belief in the company’s long-term value proposition. Sullivan maintains that every wastewater treatment facility globally could be a potential customer for SCWO’s technology, highlighting the vast market opportunity for the firm’s modular water treatment products.
Sullivan’s optimism is also supported by the company’s solid financial position, with $10.4 million in cash and no debt, which provides a foundation for future growth despite an increased cash burn forecasted for the short term. The expectation that 374Water will deliver its first water treatment unit to the Orange County Sanitation District in the upcoming quarter adds to the positive outlook. Furthermore, the maintained revenue forecasts for the delivery of multiple water treatment units in the next years, with significant revenue growth expected, reinforce the Buy rating despite widening estimated EBITDA losses due to increased costs associated with these deliveries.
SCWO’s price has also changed slightly for the past six months – from $1.240 to $1.220, which is a -1.61% drop .
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
374Water (SCWO) Company Description:
PowerVerde, Inc. engages in the development, commercialization, and marketing of electric generating power systems. Its power systems are designed to produce electrical power with zero emissions or waste byproducts, based on a patented pressure-driven expander motor and related organic rankine cycle technology. The company was founded by Fred Barker and George Konrad in March 2007 and is headquartered in Miami, FL.
