Buy Loop Industries for a double, this analyst says

Roth Capital Partners analyst Gerry Sweeney says Loop Industries (Loop Industries Stock Quote, Chart, News, Analysts, Financials NASDAQ:LOOP) continues to move closer to commercialization through its India and European joint ventures.

In a May 29 update, Sweeney maintained his “Buy” rating and  $3.00 target on Loop, based on 14.0 times his fiscal 2028 Adjusted EBITDA estimate of $23.8-million, discounted back at 15%.

“LOOP continues to push commercialization forward and is eyeing the finish line with its Ester JV,” Sweeney said. “The India facility appears to be in the midst of finalizing its financing package, which is driven in part by recent offtake agreements (announced and pending).”

Sweeney said Loop’s 50/50 joint venture with Ester remains on track to have its India facility operational in early 2028. The project’s estimated capital cost has been lowered to $165-million to $170-million from about $190-million, while financing efforts continue, with technical due diligence expected by mid-July and debt financing targeted for September.

The India facility is designed to produce 70,000 tonnes per year of PET resin, with potential expansion capacity of another 100,000 tonnes annually. Sweeney said offtake agreements remain a key financing condition, with Loop targeting 50% of facility output secured through long-term contracts.

In Europe, Loop’s Infinite Loop Europe joint venture has selected BASF Industriepark Lausitz in Schwarzheide, Germany, as the site for its first European manufacturing facility, which is expected to produce 70,000 tonnes per year of recycled PET and polyester fibre.

Sweeney said agreements tied to the European project should generate engineering and feasibility revenue to help offset corporate cash burn. Management said liquidity remains sufficient through calendar 2026, supported by expected engineering services revenue, European JV milestone payments and Canadian government funding.

Sweeney expects Loop to generate an Adjusted EBITDA loss of $0.7-million on revenue of $5.4-million in fiscal 2027, improving to Adjusted EBITDA of $23.8-million on revenue of $9.5-million in fiscal 2028.

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