American Resources (AREC) has received a new Buy rating, initiated by William Blair analyst, Neal Dingmann.
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Neal Dingmann has given his Buy rating due to a combination of factors that highlight American Resources’ strategic positioning and growth potential. The company’s subsidiary, ReElement, utilizes a unique process for separating and refining rare earth elements, achieving nearly perfect purity levels. This innovative approach has attracted government attention, and the recent strategic partnership with POSCO is expected to drive significant growth in refining capabilities.
Moreover, American Resources’ ownership of Electrified Materials, which focuses on extracting and recycling valuable metals, further strengthens its market position. The company has already secured substantial potential financing from the Export-Import Bank of the United States and a grant from the Department of Defense, with additional funding opportunities from the National Science Foundation. These developments, coupled with the modular design potential of ReElement, provide a solid foundation for future advancements. Dingmann’s valuation model suggests a potential upside in stock value, supported by favorable comparisons to industry peers, justifying the Buy rating.
In another report released on October 14, Roth MKM also maintained a Buy rating on the stock with a $5.00 price target.