Electra Battery Materials Corp, 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 $2.10 price target.
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Heiko Ihle has given his Buy rating due to a combination of factors including Electra Battery Materials Corp’s strategic supply chain agreement with Positive Materials Inc. This agreement is expected to enhance Electra’s customer base by integrating its battery-grade sulfate into Positive Materials’ manufacturing processes. Additionally, this partnership complements Electra’s existing agreement with LG Energy Solution, positioning the company for further commercial opportunities.
Moreover, Ihle’s valuation model, which includes a discounted cash flow analysis, reflects Electra’s favorable location and long-term potential. The model yields a valuation of $500.5 million, or $2.14 per share, supporting the Buy rating. Ihle also highlights Electra’s potential near-term catalysts, such as the construction and commissioning of its cobalt sulfate refinery, as well as the potential expansion of its asset base, which further solidifies the company’s growth prospects.