This analyst just raised his target on Loop Industries

Paradigm Capital analyst J. Marvin Wolff raised his target price on Loop Industries (Loop Industries Stock Quote, Chart, News, Analysts, Financials NASDAQ:LOOP) to US$6.10 from US$5.80 and maintained his “Buy” rating, saying the company’s new Nike offtake agreement and progress on its India joint venture strengthen the long-term growth outlook.

In a Nov. 10 report, Wolff said the deal “sets the stage for India Loop Plant #1 financing” under the company’s ELITe joint venture with Ester Industries.

“With the strong support of Reed, Société Générale and Ester, Loop has demonstrated that it is very fundable; thus, we maintain our Buy rating,” he said.

Loop Industries, headquartered in Terrebonne, Que., has developed patented technology to recycle low-grade polyethylene terephthalate (PET) plastic waste into high-quality, food-safe resin for packaging and textiles. Its process breaks down mixed or contaminated plastics into base monomers, rDMT and rMEG, which can then be repolymerized into new PET without using virgin material.

Loop reported a Q2/FY26 net loss of US$3.4-million, or US$0.07 per share, compared with Wolff’s forecast of a US$3.2-million loss. He called the period “a staging quarter,” adding that “Q2 earnings came in at a loss of $3.4M or ($0.07/sh); we were looking for a loss of $3.2M or ($0.07/sh).”

The company announced Nike as an anchor client for its India-based plant, with the ELITe joint venture to supply the footwear company with “Twist,” Loop’s textile-to-textile resin derived from recycled feedstock. Wolff said this offtake “can now proceed with the financing package for the plant,” marking a key milestone for the India project.

Located in the Gujarat province, the site covers 93 acres and will host two facilities: a 70,000-tonne-per-year first plant and a second 100,000-tonne facility to follow. TATA Consulting Engineers have completed engineering design, and the all-in cost of US$176-million remains on track.

Wolff said that Loop’s India venture also reflects a broader shift in strategy.

“Rather than focus on large and costly Infinite Loop plant configurations,” he said, “Loop is focusing on two different commercialization arrangements plus engineering services.”

He said that the company’s model, “design one, build many,” should allow rapid deployment of its technology at low incremental cost.

He pointed to several new strategic relationships, including partnerships with Shinkong Synthetic Fibers and Hyosung TNC, which will integrate Loop’s recycled textile resin into their manufacturing lines, and an offtake deal with Taro Plast S.p.A. for rDMT supply.

Wolff said the India joint venture’s cost advantages make it globally competitive.

“The JVs first plant will cost about $176M in capex, which is about 45–50% lower than the same plant to be built in North America or Europe.” He also highlighted that India offers “a large feedstock supply of polyester scrap,” low labour costs, and an “enterprise-friendly government.”

At quarter-end, Loop had US$7.8-million in cash and total liquidity of US$9.7-million, which management said would fund operations until the India project’s next phase begins.

Wolff expects Loop to generate negative EBITDA of US$(11.1)-million on revenue of US$2.7-million in fiscal 2026, moderating to US$(14.2)-million on US$0.6-million in 2027 as construction ramps up. By 2030, he projects US$79-million in EBITDA (US$87.8-million including royalties), based on two Indian plants in operation.

“Our US$6.10 target is based on 7x our FY2030 EBITDA estimate, discounted at 8%,” Wolff wrote. “The political, consumer and capital markets backdrop for ESG-focused companies is excellent, and Loop offers an ESG investment with strong growth prospects and a quick path to profitability.”

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