Analyst Heiko Ihle of H.C. Wainwright reiterated a Buy rating on TMC the metals company Inc., boosting the price target to $7.25.
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Heiko Ihle has given his Buy rating due to a combination of factors including the promising outcomes from TMC’s recent Pre-Feasibility Study and Initial Assessment for its NORI-D Project and other areas in the Clarion-Clipperton Zone. The study highlights a significant after-tax Net Present Value of $5.5 billion and an Internal Rate of Return of 27% for the NORI-D area, with an expected average EBITDA margin of 43%. Additionally, the Initial Assessment for the remaining resources in the NORI and TOML areas indicates an after-tax NPV of $18.1 billion and an IRR of 35.6%, showcasing the substantial economic potential of these projects.
Furthermore, TMC’s strategic partnership with Korea Zinc, a leader in non-ferrous metal refining, enhances the company’s prospects. Korea Zinc’s investment of $85.2 million and their expertise in refining and Cathode Active Material technology provide TMC with both financial liquidity and technical support. This partnership is expected to create synergies and secure a long-term supply of critical metals, reinforcing TMC’s position in the market. These developments collectively support Heiko Ihle’s Buy rating for TMC’s stock.
In another report released yesterday, Wedbush also maintained a Buy rating on the stock with a $11.00 price target.
Based on the recent corporate insider activity of 21 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 TMC in relation to earlier this year.