Analysts rate Loop Industries Inc.(LOOP:NSD) with a Strong Buy, $22.50 Target

STA Research
by: STA Research

Analysts rate Loop Industries with a consensus Strong Buy rating and a 12-month average target price of $22.50 per share.

Raymond James Capital maintained Loop Industries  with a Outperform rating,  and maintains the $25 target on the company’s stock..

Based on the Loop Industries Inc. stock forecasts from 2 analysts, the average analyst target price for Loop Industries Inc. is USD 22.50 over the next 12 months. Loop Industries Inc.’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Loop Industries Inc. is Bearish, which is based on 1 positive signal and 6 negative signals. At the last closing, Loop Industries Inc.’s stock price was USD 8.55. Loop Industries Inc.’s stock price has changed by +1.90% over the past week, +1.30% over the past month and +0.35% over the last year.

Loop Industries, Inc., a technology company, focuses on depolymerizing waste polyethylene terephthalate (PET) plastics and polyester fibers into base building blocks. The company was incorporated in 2010 and is based in Terrebonne, Canada.

What we like:

Low debt

The company is less leveraged than its peers and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

What we don’t like:

Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market that can help it grow or acquire in the future.

Poor risk-adjusted returns

This company is delivering below median risk-adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to book value

The stock is trading high compared to its peers’ median on a price to book value basis.

Negative cash flow

The company had negative total cash flow in the most recent four quarters.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector.

 

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