Nouveau Monde Graphite's Price Target Cut to $5.50, Production Pushed to 2028
H.C. Wainwright retained a Buy rating on Nouveau Monde Graphite but cut its price target to $5.50 from $7.50, citing dilution from a recent equity raise and a production start delay to H1 2028. The DCF model values company at $919 million or $3.51 per share, incorporating $68.8 million cash and $11.6 million debt.
1. Price Target Reduction and Dilution
On January 30, H.C. Wainwright reiterated a Buy rating but reduced the price target to $5.50 from $7.50, citing expected dilution from a recent equity raise.
2. Production Timeline and Valuation Update
The firm pushed back first production to the first half of 2028, leading to an updated discounted cash flow model that values the company at $919 million (about $3.51 per share), after accounting for $68.8 million cash and $11.6 million debt.
3. Offtake Agreements and Coverage Initiation
Maxim Group initiated coverage with a Buy recommendation on January 20, and the company secured a seven-year off-take agreement with the Canadian government for 30,000 tons per annum of graphite concentrate for its Phase 2 production.