Origin Materials upgraded to Buy from Neutral at BofA

BofA analyst Steve Byrne upgraded Origin Materials to Buy from Neutral with a price target of $3, up from $1.35. On its Q2 earnings call, Origin announced that it now has an MOU for two years of closure production for PET-based caps and closures, valued at $100M in revenue beginning in early-2025, the analyst tells investors in a research note. While BofA continues to see long-term value in Origin’s biomass conversion technology, this ramp in PET closures has pulled forward its estimate of EBITDA breakeven to 2027 vs. 2029 previously, with the potential for profitability in 2026 due to additional discussions underway for closures contracts and/or licenses, the firm says.