Lucid files for 1-for-10 reverse stock split requiring shareholder approval
On Wednesday, Benchmark analyst Mickey Legg increased the price target for Aqua Metals (NASDAQ:AQMS) shares to $3.00, up from the previous target of $1.00. The firm maintained a Speculative Buy rating on the stock. The revision follows Aqua Metals’ recent update after publishing its fiscal year 2024 results. According to InvestingPro data, the company currently has a market capitalization of just $12.8 million, with analysts maintaining a Strong Buy consensus recommendation. Two analysts have recently revised their earnings expectations upward for the upcoming period.
Aqua Metals has been actively working towards securing a lending partner to finance the first phase of its Sierra ARC facility. This phase is designed to process 7,000 tonnes of black mass feedstock every year. The company has revised its Phase One strategy, aiming to lower capital equipment costs and accelerate the time it takes to generate revenue, with an objective of achieving a 3-year payback on investment. InvestingPro analysis indicates the company is currently undervalued, though financial health metrics show it’s quickly burning through cash with short-term obligations exceeding liquid assets, as reflected in a current ratio of 0.59.
The company also completed a 1-for-20 reverse stock split in November, and since then, the stock price has stabilized at approximately $2.00. Legg noted that despite production delays and a difficult macroeconomic environment affecting the stock’s performance, the current stock price does not fully account for the company’s long-term potential and intellectual property value. The analyst also pointed to the value of the current assets listed on Aqua Metals’ balance sheet as a reason for maintaining the Speculative Buy rating. InvestingPro subscribers can access 12 additional ProTips and comprehensive financial analysis, including detailed insights into the company’s valuation metrics and growth potential.
In summary, Benchmark’s revised price target reflects a positive outlook on Aqua Metals’ strategic plans and its potential for growth, despite recent challenges and market conditions that have influenced the company’s stock performance. The stock has seen significant volatility, with a 52-week range of $1.33 to $14.10, and currently trades with a price-to-book ratio of 0.63.
In other recent news, Aqua Metals Inc . reported a net loss of $24.6 million for the year ending December 31, 2024, with a loss of $3.83 per share. Despite the loss, the company managed to raise approximately $15 million and secured a $2.2 million tax abatement from Nevada, highlighting its strategic focus on lithium recovery. Aqua Metals has completed a successful endurance run at its lithium aqua refining pilot plant and plans to significantly expand processing capacity by 2025. The company is also exploring project financing and debt-based financing to support its expansion plans. Analysts from The Benchmarks Company have engaged with Aqua Metals, reflecting interest in its strategic financing and operational plans. Aqua Metals aims to capitalize on co-location and licensing opportunities while seeking government funding in light of recent executive orders. These developments indicate Aqua Metals’ strategic adaptability and focus on positioning itself as a leader in the domestic critical mineral recovery sector.
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