H.C. Wainwright Keeps a Buy Rating on Quest Resource

H.C. Wainwright analyst Amit Dayal maintained a Buy rating on Quest Resource (NASDAQ: QRHC) today and set a price target of $5. The company’s shares closed yesterday at $1.98.

Dayal commented:

“We are pleased to see the company post a sequentially higher quarter with revenues now primarily attributed to higher margin customers. We would like to remind investors that 4Q17 was the last quarter that had contribution from the lower margin contracts. We believe YoY revenue comps will most likely start showing growth starting in 4Q18. In line with management’s commentary on the earnings call we are projecting for faster revenue acceleration in 2H18. Management reiterated its 2018 expectations for adjusted-EBITDA of $4-7M and positive net income of $500K to $3.0M. With gross margins now rising to the mid-teens, and operating costs expected to drop to under 20%, the company is quickly moving towards profitability. The company has several partnerships already underway that can support revenue growth and open new markets.”

According to TipRanks.com, Dayal is a 1-star analyst with an average return of -0.1% and a 40.4% success rate. Dayal covers the Consumer Goods sector, focusing on stocks such as Superconductor Technologies Inc, Pointer Telocation Ltd, and Pacific Ethanol.

Quest Resource has an analyst consensus of Moderate Buy, with a price target consensus of $5.

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Based on Quest Resource’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $1.31 million. In comparison, last year the company had a GAAP net loss of $1.91 million.

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Quest Resource Holding Corp. engages in the provision of management programs on how to reuse, recycle and dispose a variety of waste streams and recyclables to businesses. Its services focus on the waste streams and recyclables from big box, food chain and other retailers; automotive and fleet providers; hospital and other healthcare facilities; and commercial, industrial, residential, and educational properties. The company was founded by Jeffrey I. Rassas on August 22, 2008 and is headquartered in The Colony, TX.