Neal Dingmann, an analyst from William Blair, has initiated a new Buy rating on NioCorp Developments (NB).
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Neal Dingmann has given his Buy rating due to a combination of factors that highlight NioCorp Developments’ promising future. The company is nearing the start of a significant construction project aimed at producing critical minerals such as niobium, titanium, and scandium, along with potential rare earth oxides. This project is particularly noteworthy because of its diverse ore body, allowing NioCorp to focus on products that are in high demand or command higher prices.
Additionally, NioCorp has secured multiple offtake agreements, which are crucial steps towards obtaining government financing and backing. These agreements cover a substantial portion of their planned production, indicating strong market demand and providing a solid foundation for future growth. The company’s debt-free financial strategy further enhances its attractiveness, as it has managed to avoid incurring debt while securing nearly 40% of the necessary equity for production. With a potential valuation upside of 81%, based on a projected fair value of $15 per share, Dingmann’s Buy rating reflects confidence in NioCorp’s ability to scale within the critical minerals sector.
In another report released on October 17, Maxim Group also reiterated a Buy rating on the stock with a $15.00 price target.