Canaccord Genuity has adjusted its price target for Hudson (NYSE:HUD) Technologies (NASDAQ: HDSN), a company specializing in refrigerant sales, to $8.75 from the previous target of $10.00. The firm maintained its Hold rating on the stock.
The price target revision on Wednesday comes as the company faces a challenging pricing environment which has impacted its revenue and gross margins during the peak summer cooling season.
The analyst from Canaccord Genuity cited the ongoing difficulties in the refrigerant market as the reason for the lowered expectations. With the supply of virgin HFC gas already restricted to 60% of the levels before the American Innovation and Manufacturing (AIM) Act, the analyst anticipates a potential increase in pricing in 2025 as the supply continues to diminish.
The firm also pointed to the forthcoming Environmental Protection Agency (EPA) Refrigerant Management Rule as a potential pivotal moment for Hudson Technologies.
The impending regulation could have significant implications for the company, and investors are advised to monitor the situation closely.
The new price target of $8.75 is based on an 8.5x price-to-earnings (P/E) multiple of the revised 2025 earnings per share (EPS) estimate of $1.03.
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