Nouveau Monde Graphite ( NYSE: NMG ) +2.8% in Wednesday's trading after H.C. Wainwright initiated coverage with a Buy rating and a $17 price target, citing Canadian-based graphite and anode material operations that offer meaningful growth potential.
"On a standalone basis, we believe that Matawinie offers strong economics through its low-cost potential based on a naturally occurring high-purity graphite resource," Wainwright's Heiko Ihle wrote, adding that Nouveau Monde ( NMG ) "ultimately intends to generate active anode-material from its Bécancour Battery Material Plant, with the potential to become North America's largest integrated natural graphite producer."
Ihle views Nouveau Monde ( NMG ) as "a strong investment opportunity given significant projected growth in electric vehicle production amid the essential role graphite is expected to play as anode-material within the global push for the electrification of vehicles."
Nouveau Monde's ( NMG ) Matawinie graphite mine will have a reserve of 61.7M metric tons when built, but a previous royalty deal and the addition of more debt may hurt the stock's performance, The Methodical Investors writes in an analysis posted on Seeking Alpha .
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Nouveau Monde Graphite started with Buy rating at Wainwright