Westwater Resources, the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst Heiko Ihle from H.C. Wainwright reiterated a Buy rating on the stock and has a $2.00 price target.
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Heiko Ihle has given his Buy rating due to a combination of factors surrounding Westwater Resources’ ongoing developments and financial strategies. The company has made significant progress at the Kellyton Graphite Plant, with the installation of critical equipment and the transition to the power grid, which positions it well for future production scaling. Additionally, about 85% of the necessary equipment for Phase I has been received, and the qualification plant is actively producing samples for customer trials.
Moreover, Westwater Resources is advancing in its debt financing efforts, having initiated the syndication of a $150.0M secured debt facility to fund the remaining construction at Kellyton. The involvement of the U.S. Export-Import Bank as a potential funding source further strengthens its financial position. Ihle’s valuation of the company is based on a discounted cash flow model for its graphite operations, with a revised discount rate reflecting the site’s progress and favorable geopolitical risk factors. Despite an increased share count, the firm’s valuation remains robust, supporting the Buy rating with a price target of $2.00.