Origin Materials double downgraded to Underperform at BofA on uncertain future

As previously reported, BofA analyst Steve Byrne downgraded Origin Materials (ORGN) to Underperform from Buy with a price target of $1.50, down from $2.50. The firm previously had a constructive view of Origin’s novel process to convert plant residues into CMF, a furan-based building block chemical, and HTC, a carbon-intensive product like carbon black, but the firm has “further doubts” that Origin will be able to license this technology given uncertain U.S. support for sustainable products, the departure of co-CEO Rich Riley, and the complete diversion of company focus to the polyethylene terephthalate caps business.