Shares of Origin Materials (NASDAQ:ORGN) continued their plunge for the second day after announcing delays and increased costs for its second plant. This adjustment didn’t go unnoticed; Bank of America promptly shifted its rating from Buy to Neutral, setting a cautious $2 price target. Their analyst, Steve Byrne, cited concerns over escalating funding risks and a potential postponement of profit expectations as reasons for the downgrade.
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Byrne also emphasized that Origin’s capital expenditures for their second plant have essentially tripled, leading to reduced profit projections. His forecast for FY 2032 EBITDA took a significant hit, dropping to an estimated $300M from a previous optimistic projection of over $500M by 2030. Additionally, concerns over financing without further dilution have intensified with the company’s looming external funding requirements amounting to around $2.15B for two of its plants.
A look at the past five trading days for ORGN stock highlights the level of impact today’s news had on it. Indeed, shares plummeted over 16% at the time of writing. As a result, investors are now down 72.56% during this timeframe.
