Analyst Michael Glen of Raymond James maintained a Hold rating on NanoXplore Inc, reducing the price target to C$2.50.
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Michael Glen’s rating is based on a combination of factors, including the recent equity offering by NanoXplore Inc, which raised approximately $25.7 million. This capital is intended to support the company’s growth plans, particularly in expanding graphene production capacity. However, the near-term market conditions present challenges, as two of NanoXplore’s large customers are reducing operations due to economic and cross-border trade issues.
Furthermore, while there is potential for improvement in the latter half of the fiscal year as new programs ramp up, the current demand uncertainty and extended adoption timelines for graphene products contribute to the Hold rating. The company’s ongoing capacity expansion in North Carolina and a multi-year supply agreement with Chevron Phillips Chemical offer some positive outlooks, but the overall market performance and demand remain uncertain, justifying a cautious stance with a target price adjustment to C$2.50.
In another report released on October 30, RBC Capital also maintained a Hold rating on the stock with a C$2.50 price target.