H.C. Wainwright initiates 5E Advanced Materials stock with Buy rating

Published 02/09/2025, 12:42
H.C. Wainwright initiates 5E Advanced Materials stock with Buy rating

Investing.com - H.C. Wainwright initiated coverage on 5E Advanced Materials (NASDAQ:FEAM) with a Buy rating and a price target of $7.50 on Tuesday. The stock, currently trading at $3.48, has seen a significant decline of nearly 79% over the past year, though InvestingPro analysis suggests the stock may be undervalued at current levels.

The research firm highlighted that 5E Advanced Materials is positioning itself to become one of the first new U.S.-based boron producers in decades, entering a market currently dominated by a global duopoly.

According to H.C. Wainwright, Rio Tinto (NYSE:RIO) and Eti Maden (private) together control 80-85% of the world’s boron supply, creating an opportunity for new market entrants.

The company’s flagship asset, the Fort Cady Project in Southern California, is fully permitted and holds both mineral and surface rights, the firm noted.

H.C. Wainwright emphasized that the project hosts a large-scale boron resource, supporting the firm’s positive outlook on the company’s prospects.

In other recent news, 5E Advanced Materials, Inc. announced the pricing of its underwritten public offering of common stock at $3.50 per share. The company aims to raise approximately $8.31 million in gross proceeds from the sale of 2,374,481 shares before accounting for underwriting discounts, commissions, and offering expenses. This development follows the company’s earlier announcement of launching the public offering of its common stock shares. Konik Capital Partners, LLC is serving as the lead bookrunning manager for this offering. Additionally, 5E Advanced Materials plans to provide underwriters a 30-day option to purchase more shares at the public offering price. These recent developments highlight the company’s efforts to secure additional capital.

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