Largo Resources (LGO), the Materials sector company was revisited today, and remains undervalued for at least one analyst on the street. Analyst Heiko Ihle from H.C. Wainwright reiterated a Buy rating, with a C$3.40 price target.
Ihle noted:
“We maintain our Buy recommendation and our price target of C$3.40 per share. Our valuation remains based on a DCF for the Maracás Menchen Mine, utilizing a 9.0% discount rate, which brings our estimated NAV to C$2.16 billion, or C$3.16 per share. With the recent retirement of outstanding debt, we now only add Largo’s cash of C$0.22 per share to arrive at our NAV of C$3.38 per share, which we round to C$3.40 per share. We believe there is substantial upside potential through continued production expansion, further exploration, and the possible return of capital.”
According to TipRanks.com, Ihle has 0 stars on 0-5 star ranking scale with an average return of -5.8% and a 39.7% success rate. Ihle covers the Basic Materials sector, focusing on stocks such as Solitario Exploration & Royalty, Americas Silver Corporation, and Golden Star Resources Ltd.
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The word on The Street in general, suggests a Hold analyst consensus rating for Largo Resources with a C$3.40 average price target.
Largo Resources Ltd. engages in the exploration and development of vanadium and tungsten projects in Brazil and Canada. It focuses in the production of vanadium flake, purity vanadium flake and purity vanadium powder.
