Questor Technology upgraded by ATB Capital

ATB Capital Markets analyst Tim Monachello raised his rating on Questor Technology (Questor Technology Stock Quote, Chart, News, Analysts, Financials TSXV:QST) to “Speculative Buy” from “Sector Perform” and lifted his target price to $0.85  from $0.45  in a Sept. 1 report, citing the growth of its Mexican rental fleet business as “the most tangible and material opportunity the company has faced since its earnings collapsed in 2020.”

Calgary-based Questor develops clean combustion incinerators and other environmental emission-reduction technologies.

As reported by the Globe and Mail, Monachello cautioned that the opportunity “remains somewhat speculative” and depends on the company’s ability to execute on initial deployments and secure further contracts, but said the potential scale represents “a transformational inflection in earnings over the medium term.”

Questor shares have risen nearly 35% since its second-quarter results on Aug. 8, which beat expectations. Revenue of $3-million, the company’s highest since early 2020, was up 40% sequentially and topped Monachello’s $2.2-million forecast.

Adjusted EBITDAS of $0.9-million exceeded his $0.5-million estimate.

“QST’s strong Q2/25 results were a function of deliveries for multiple international orders signed over recent quarters,” he said.

Monachello pointed to new rental work in Mexico as the company’s key growth driver. Six Q5000 incinerators have been deployed under a long-term contract, with another six expected in the fourth quarter of 2025. Project schedules could support demand for up to 50 Q5000 units by year-end 2026, which he estimates would represent $25–30-million in annualized revenue from Mexico alone, compared with $5-million in total company revenue in 2024.

With this new growth trajectory, he raised his 2026 and 2027 EBITDAS forecasts and shifted his valuation horizon forward.

“We move our target year to 2026, given tangible tailwinds to growth beginning in late 2025, helping to de-risk our growth trajectory,” he said.

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