Perpetua Resources: Strategic Developments and De-risking Enhance Buy Rating

H.C. Wainwright analyst Heiko Ihle reiterated a Buy rating on Perpetua Resources (PPTA – Research Report) today and set a price target of $27.50.

Heiko Ihle has given his Buy rating due to a combination of factors that enhance the prospects of Perpetua Resources. The company recently secured over $425 million in equity, which is a significant step towards meeting the requirements for a substantial debt financing application with the Export-Import Bank of the U.S. (EXIM). This financial maneuver is expected to support the development of the Stibnite project, which has been identified as a strategically important asset for the domestic supply chain of critical minerals.
Furthermore, the recent equity raise and the receipt of the final necessary permit have significantly de-risked the project, leading to a reduction in the discount rate applied to the asset from 11.0% to 8.5%. This adjustment reflects the ongoing de-risking process and aligns with similar assets in favorable jurisdictions. The analyst’s valuation, based on a discounted cash flow analysis, supports a price target of $27.50 per share, reinforcing the Buy rating. The strategic importance of the project, coupled with strong federal support and favorable market conditions, further bolsters confidence in the company’s future prospects.

In another report released on June 9, Roth MKM also maintained a Buy rating on the stock with a $19.00 price target.

Based on the recent corporate insider activity of 24 insiders, corporate insider sentiment is neutral on the stock.