Trash to Treasure? The High-Risk Recycling Growth Stock Worth a Second Look

30‑Second Take

Why now? PureCycle Technologies, Inc. has just announced a $300 million capital raise amid ambitious growth plans.

This comes after the plastic waste recycling firm started the year on a high note with decisive proof of concept.

PCT sold 500,000 pounds of resin made from post-consumer feedstock to a company that will use it to make upholstery for outdoor furniture. 

It also expects to boost capacity at its central production facility this year as it ramps up capacity and has several expansion projects underway worldwide. 

It’s an attractive growth stock that’s 45.07% up on the year-to-date. It remains attractively priced in an industry set to be worth $129.5B by 2035.

Trade Setup

Time frame: Swing to medium-term
Edge type: Momentum breakout

Snapshot Table

Chart

5-Day Synopsis: Yesterday (Tuesday, June 17) was one of the biggest days of the year for PureCycle Technologies, Inc.

It confirmed a $300 million capital raise and says it will use those funds to bring one billion pounds of installed capacity online across the United States, Europe, and Asia before the end of the decade.

PureCycle expects to hit a projected EBITDA of $600 million annually by 2030.

These growth ambitions have sparked a surge of demand, with PCT stock up 23.48% by 11 am after the news was confirmed. 

Bull Case 

Core thesis: PureCycle Technologies, Inc. is a circular economy pioneer.

It treats plastic waste as a renewable resource thanks to its ground-breaking patented recycling process.

It separates color, odor, and impurities from plastic waste feedstock to transform it into PureFive™ resin. 

Contaminated polypropylene is transformed into ultra-pure recycled resin indistinguishable from virgin plastic.

The outcome is sustainable, recycled resin and closed-loop recycling with endless applications across multiple industries. 

Catalysts: PureCycle Technologies, Inc. is creating a circular economy for plastics, and in doing so, is tackling one of the most significant environmental challenges of our time: plastic waste.

It has secured numerous commercial partnerships, is expanding internationally, and just this week confirmed a capital raise of $300 million.

Those funds will be used for further expansion projects, including plans to build two 130-million-pound lines in Thailand and Antwerp. 

Valuation upside: PCT stock is trading well above the highest analyst price target of $13. The average consensus estimate is $10.75. 

Technical tailwind: The stock is trading within cents of the 52-week range and more than 155% above the 50-day moving average.

This breakout could attract more momentum traders, with technical indicators flashing bullish in the near term.

Bear Case 

Key risk: Concerns have been raised about production reliability at the firm’s Ironton base.

It has faced consistent battles with mechanical issues and production outages, which limit its ability to increase capacity.

In its Q1 2025 earnings report, PureCycle CEO Dustin Olson said that onstream time had improved to nearly 90% in April, but it remains to be seen if this can be maintained.

Ongoing issues could derail growth ambitions and undermine investor confidence. 

Macro/sector headwinds: The global supply of petrochemicals is running above demand, creating price pressures for PCT’s polypropylene.

Large variations in feedstock and oil prices also impact production economics. 

Competitive threat: PureCycle faces competitive threats from traditional recycling firms such as Violia, which continue to invest in their sorting and recycling technologies, and rivals in its own space.

Existing chemical recycling companies, including Shell and Eastman, also pose a similar threat, as they improve their mixed recycling capabilities. 

Crowded-trade concern: PureCycle reported its first revenue in the Q1 2025 earnings report.

If it misses expectations in the Q2 disclosure or the geopolitical situation changes, sentiment could quickly shift, impacting PCT stock performance.

Quick Checklist 

✅ Thesis still valid after today’s close
✅ Volume confirms move above key levels
✅ Catalyst date double-checked (June 17, 2025)

Deep‑Dive Links

• Q1 2025 Earnings Report 

• Analyst Ratings and Price Targets

• Short Interest Data

• Company Profile and Investor Relations

That’s all for today’s Everyday Alpha. We’ll have a new pick for you every morning before the market opens, so stay tuned!

Best Regards,
—Noah Zelvis
Everyday Alpha