Trilogy Metals downgraded to Market Perform from Outperform at BMO Capital

BMO Capital downgraded Trilogy Metals (TMQ) to Market Perform from Outperform with a price target of $5.50, up from $3. The firm cites valuation for the downgrade following the stock’s re-rating post the U.S. federal government investment. While the news is “materially positive” for Trilogy, the shares are now trading in “excess of multiples typically ascribed for development stage projects,” the analyst tells investors in a research note. BMO believes challenges to the announcement may also emerge.