Analyst Heiko Ihle of H.C. Wainwright reiterated a Buy rating on Western Copper (WRN – Research Report), retaining the price target of $4.25.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Heiko Ihle’s rating is based on several key factors surrounding Western Copper and Gold Corporation’s flagship Casino Copper-Gold Project. The company recently reported positive results from its metallurgical program, notably achieving a significant increase in molybdenum recovery rates to 90%, compared to 71% in the earlier feasibility study. This improvement in molybdenum recovery, alongside consistent recoveries for copper and gold, enhances the economic viability of the Casino Project. Additionally, the low levels of impurities in the copper and molybdenum concentrates further strengthen the project’s prospects.
Furthermore, Heiko Ihle reiterates the Buy rating with a price target of $4.25, supported by a discounted cash flow valuation of the Casino Project. The valuation incorporates a 16.0% discount rate, reflecting the project’s progress and a 0.6x multiple to the estimated net asset value, considering strong commodity pricing and potential future mergers and acquisitions. The analyst also highlights the company’s solid financial position, with $52.4 million in cash and equivalents, which supports continued development and de-risking of the Casino Project, including the anticipated submission of the Environmental and Socio-Economic Effects Statement by the third quarter of 2025.
Based on the recent corporate insider activity of 15 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of WRN in relation to earlier this year.