NioCorp Developments, the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst Heiko Ihle from H.C. Wainwright reiterated a Buy rating on the stock and has a $8.25 price target.
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Heiko Ihle has given his Buy rating due to a combination of factors that highlight NioCorp Developments’ strategic position and potential for growth. The completion of the Pentagon-funded drill program at the Elk Creek Critical Minerals Project is a significant milestone, as it aims to convert Indicated resources into Measured Resources, enhancing the project’s mineral reserves. This government support, alongside a potential $800 million debt financing package from the U.S. Export-Import Bank, underscores the strategic importance of NioCorp’s operations.
Furthermore, the increasing urgency for a domestic supply of critical minerals, as highlighted by a recent report from the U.S. Department of the Interior and the U.S. Geological Survey, positions NioCorp as a key player in addressing supply chain vulnerabilities. The report identifies niobium, dysprosium, and terbium, all part of NioCorp’s resource base, as critical minerals. Ihle’s increased price target reflects updates to the financial model, including a reduced discount rate and the removal of the NAV multiple, despite some dilution from a recent equity raise. These adjustments account for the risks and potential delays in production, aligning NioCorp’s valuation with similar assets in geopolitically comparable regions.
Ihle covers the Basic Materials sector, focusing on stocks such as Americas Gold and Silver, Avino Silver & Gold, and Endeavour Silver. According to TipRanks, Ihle has an average return of 43.9% and a 71.66% success rate on recommended stocks.