This analyst says Loop Industries is a buy

Loop Industries (Loop Industries Stock Quote, Chart, News, Analysts, Financials NASDAQ:LOOP) provided a first-quarter fiscal 2026 update on August 5, outlining progress toward commercializing its PET depolymerization technology.

Roth Capital Markets analyst Gerry Sweeney maintained a “Buy” rating and $3.00 price target, noting that Loop appears to be in the final stages of preparing its India joint venture for construction. “We believe LOOP is entering the final innings of its India JV to commence construction of its PET depolymerization (recycling) facility,” he said in an August 5 report. Key steps ahead include customer offtake agreements, debt financing, and final site selection, which Sweeney expects could be secured in the coming months.

Loop Industries is a Canadian technology company that uses patented methods to break down low-value PET plastic waste into basic materials, which it then turns into high-quality, food-grade plastic and polyester.

Loop Industries reported first-quarter fiscal 2026 revenue of $0.3-million, Adjusted EBITDA of negative $3.0-million, and EPS of negative $0.07. These results were slightly below Roth Capital’s estimates of $0.2-million in revenue and a $2.3-million EBITDA loss, while EPS matched the forecast.

The company’s joint venture with Ester Industries in India remains its primary focus. Loop continues to target the start of construction on the facility in the fourth quarter of
calendar 2025, which would mark its first fully commercialized plant.

“The India location should allow LOOP to leverage cheaper construction costs as well as utilize the region’s polyester and PET industry for waste material and off-takes for recycled product (PET and polyester),” Sweeney said. “While a few gating factors remain, it appears LOOP and Ester are managing the process well. Key items include site selection, potential off-take agreements and debt financing. These should come into place over the next 3-4 months.

Sweeney pointed to Loop’s Terrebonne, Quebec facility as a key asset in supporting future off-take agreements.

“This facility not only provided a test bed for the processing of varying materials and for partners to observe and review data, it also provided material for specialty runs products, which included Evian bottles and other CPG products,” he said. “We believe this likely positions LOOP for potential off-take agreements. This, in turn, should also help facilitate improved economics on debt packaging and de-risk the operation further.”

Sweeney also noted increased insider buying activity in July, including purchases by Chairman and CEO Daniel Solomita. Approximately 1.45 million shares were acquired for a total of $1.5-million, at an average price of $1.09 per share.

Sweeney said Loop generated an Adjusted EBITDA loss of $12.8-million on $10.9-million in revenue in fiscal 2025. He expects those numbers to improve to a loss of $10.8-million on $1.5-million in revenue in fiscal 2026, slightly wider than his prior estimate of a $10.0-million loss on $1.0-million in revenue. For 2027, he forecasts a reduced EBITDA loss of $2.4-million on revenue of $5.4-million.

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