This Stock will not Stay Undervalued for Long
The company has great balance sheet strength and has been a market leader in its segment
Hello Everyone,
Max here again with this gem of an analysis from Shailesh Kumar of Astute Investor’s Calculus.
Hudson Technologies (HDSN) is a small company selling refrigerants to commercial customers in the US. The company has great balance sheet strength and has been a market leader in its segment. The stock price is temporarily depressed due to the new EPA (Environmental Protection Agency) rule phasing out virgin HFC and mandating an increase in the use of reclaimed refrigerant.
As the companies work off their inventory, the refrigerant pricing will become firmer. Hudson Technologies is also a leader in refrigerant reclamation and will benefit from the rule change.
Read this article to know the details, valuation analysis, and how Shailesh came up with his estimate of about 85% return potential on this stock. Please note that the article is for paid subscribers, but you should be able to unlock one paid article for free on his newsletter.
In the next email I will share some of Shailesh’s core investment philosophies that I am sure will resonate with you.
Best Regards,
Max
PS: To be completely transparent, Shailesh ended up owning the stock in his portfolio after this recommendation was shared with his subscribers. He posts his portfolio as a reference for the paid subscribers, but it is not intended to be a solicitation to buy or investment advice.
Hudson Technologies (HDSN) is currently holding a "Strong Buy" consensus rating, as indicated by the analyst average price target of $101. This suggests that analysts have a positive outlook on the stock and believe it has potential for growth from its current price.HDSN Analyst RatingJun 12, 2024Sep 11, 2024However, the stock experienced a slight decline of -0.36% on September 12, 20242, which may be indicative of market reactions to recent news or broader market trends. It's important to consider that consensus ratings and price targets are based on analysts' opinions and can be influenced by various factors, including market conditions and company-specific news.