PureCycle Technologies downgraded to Neutral from Buy at Roth MKM

Roth MKM downgraded PureCycle Technologies to Neutral from Buy with a $3 price target. While the firm believes PureCycle’s technology for recycling used polypropylene is “viable,” ongoing mechanical issues at its Ironton facility give Roth concern the facility may not reach required milestones with municipal bondholders, leading to a potential acceleration of repayment of municipal bonds. If PureCycle is not able to achieve municipal milestones, the company would likely face “a significant need for equity investment,” says the analyst, who calls the next 60 or so days “crucial” for PureCycle.