Roth Capital Analyst Optimistic About Hudson Technologies, Inc. (HDSN) After It Lands Big Contract
Analyst Gerry Sweeney from Roth Capital affirmed Hudson Technologies, Inc. (NASDAQ:HDSN) with a Buy rating and price target of $6.50, marking a 71.5% increase from current levels. This rating is amid Hudson winning a major DLA contract this past week. The contract, given by the U.S Defense Logistics Agency, is worth up to $400 million and has a duration of five years with an additionally five year renewal. Hudson will supply compressed gases and cylinders to U.S military installations, Federal civilian agencies, and foreign militaries.
Sweeny notes that this deal is a “triple” for the company with a main investors focus and value drive being R-22 reclaim. He believes this contract “adds significant value and earnings to the distributing side of the thesis.” It is also an important milestone for the company as they attempt to shift to a “gas distributor model with a strong R-22 catalyst.”
According to TipRanks, Sweeny has a success rate of 51% with an average loss of (0.2%).