Hudson Technologies is a buy, Roth says

Following its most recent acquisition, Roth MKM analyst Gerry Sweeney has maintained his “Buy” rating on Hudson Technologies (Hudson Technologies Stock Quote, Chart, News, Analysts, Financials NASDAQ:HDSN).

On June 7, HDSN announced that it had acquired USA Refrigerants for $20.7-million, plus some potential earnouts.

“We have known USA for many years, and they have built a highly respected reputation in our industry based on their expertise in refrigerant recovery, as well as their strong sales organization, and high level of service and commitment,” CEO Brian F. Coleman said. “With the addition of the USA team, Hudson will create a dedicated refrigerant acquisition group focused on acquiring all types of refrigerants from CFCs to HFCs and the latest generation products.”

The acquisition strengthens HDSN’s ability to collect used gas, which is a key focus of ours,” Sweeney wrote. In addition, the purchase increases HDSN access to HFC allowances. We view this acquisition as a nice strategic move for HDSN and we should see increasing benefits for collections, especially in 2025 and onward.”

In a research update to clients June 7, the analyst maintained his “Buy” rating and $12.00 price target on HDSN.

Sweeney thinks the company will generate EBITDA of $56.5-million on revenue of $257.5-million in fiscal 2024. He expects those numbers to improve to EBITDA of $73.3-million on a topline of $300.0-million in fiscal 2025.

WHAT DOES HUDSON TECHNOLOGIES DO? (COURTESY ROTH MKM)

Hudson Technologies (NASDAQ: HDSN) sells refrigerants and services refrigerant systems. We believe HDSN is the largest refrigerant reclaimer in the U.S., providing both onsite and centralized reclamation for all variants of CFCs and HCFCs using its patented Zugibeast system. HDSN also provides refrigerant maintenance and reclamation services for large contractors and commercial customers. The company was founded in 1991 and is headquartered in Pearl River, NY.