In a latest note to investors, a research analyst has provided a rating update for the Largo Resources (LGO). Analyst Heiko Ihle from H.C. Wainwright remains bullish on the stock and has a C$5.10 price target.
Ihle wrote:
“We maintain our Buy rating and our per share PT of C$5.10. Our valuation remains based on a DCF for the Maracás Menchen Mine, utilizing a 9% discount rate. This is amid our long-term vanadium price estimate of C$17.00/lb, which is close to current spot prices, but we believe the market remains poised for additional growth.”
According to TipRanks.com, Ihle has 0 stars on 0-5 star ranking scale with an average return of -2.5% and a 40.9% success rate. Ihle covers the Basic Materials sector, focusing on stocks such as Solitario Exploration & Royalty, Golden Star Resources Ltd, and Northern Dynasty Minerals.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Largo Resources with a C$5.10 average price target.
Based on Largo Resources’ latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of C$71.42 million. In comparison, last year the company had a GAAP net loss of C$294K.
Largo Resources Ltd. engages in the exploration and development of vanadium and tungsten projects in Brazil and Canada. It holds interest in the maracás vanadium, currais novos tungsten tailings and campo alegre de lourdes iron-vanadium projects; and in northern dancer tungsten-molybdenum property located in the Yukon Territory.
The company’s shares closed on Tuesday at C$2.40.
