Analyst Heiko Ihle from H.C. Wainwright reiterated a Buy rating on Largo Resources (LGO – Research Report) and keeping the price target at $3.70.
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Heiko Ihle has given his Buy rating due to a combination of factors, primarily focusing on Largo Resources’ significant operational improvements and growth potential. The company has shown notable progress in its production rates, with a substantial increase in vanadium concentrate production and ilmenite concentrate output. This improvement is attributed to better access to the Maracás Menchen Mine’s ore and enhanced drilling efficiencies, which are expected to support continued production growth in the coming quarters.
Furthermore, Ihle highlights Largo’s strategic initiatives aimed at optimizing resource recovery and operational efficiencies, such as reprocessing non-magnetic tailings and improving vanadium recovery processes. The valuation of Largo Resources is supported by a detailed discounted cash flow analysis, which reflects a fair assessment of the company’s assets and potential. Additionally, the anticipated impact of the Storion Joint Venture in the vanadium flow battery sector in North America adds to the positive outlook, despite current market undervaluation. These factors collectively underpin Ihle’s Buy rating and price target for the stock.
Ihle covers the Basic Materials sector, focusing on stocks such as Integra Resources Corp, Largo Resources, and Endeavour Silver. According to TipRanks, Ihle has an average return of 19.2% and a 57.81% success rate on recommended stocks.