Benzinga | Aug 26, 2021 05:19PM EDT

Jefferies Adds New Small Cap Stock To Coverage, Sees 86% Upside

* Purecycle Technologies Inc (NASDAQ:PCT) was initiated at Jefferies with a Buy rating and $25 price target, implying an upside of 85.50%.

* The analyst, Hamzah Mazari, thinks that higher growth and better margins than waste peers are partially offset by execution risk and feels that the company could see multiple expansion and discount contraction long-term with execution.

* Peers of Purecycle include Kronos Worldwide, Inc (NYSE:KRO), Orion Engineered Carbons S.A. (NYSE:OEC), AdvanSix Inc. (NYSE:ASIX), Trinseo S.A. (NYSE:TSE), and Westlake Chemical Partners LP (NYSE:WLKP).

* Price Action: PCT shares closed higher by 3.93% at $13.48 on Thursday.