Freeport-McMoRan stock tumbles after Trump imposes copper tariffs
On Tuesday, H.C. Wainwright analyst Heiko Ihle updated the firm’s outlook on Largo Resources Ltd. (NASDAQ: NASDAQ:{{1089477|LGLGO), raising the price target to $3.90 from the previous $3.70 while maintaining a Buy rating on the stock. Currently trading at $1.61, the stock has experienced an 11% decline over the past week, according to InvestingPro data. The adjustment follows Largo’s financial performance report, which showed a year-over-year decline in revenue and a net loss increase.
Largo Resources recorded $124.9 million in revenue for the year, resulting in a net loss of $50.6 million, or $0.78 per share. This performance marks a downturn from the previous year, with 2023 figures showing $198.7 million in revenue and a net loss of $32.4 million, or $0.51 per share. The significant decrease in revenue, showing a 37% year-over-year decline, is attributed to a substantial drop in the company’s production and was further impacted by the declining market price of vanadium, a core product for Largo. The company’s overall financial health score is rated as WEAK by InvestingPro.
Despite the downward trend, H.C. Wainwright points out Largo’s proactive measures to counteract the financial strain. The company has launched several cost reduction initiatives aimed at enhancing margins. The analyst firm believes that these efforts, alongside potential improvements in vanadium prices, could lead to a substantial increase in free cash flow for Largo in the future. Analysts project a 47% revenue growth for the coming year, suggesting potential recovery ahead.
Looking ahead, H.C. Wainwright expresses optimism about Largo’s operational improvements anticipated in 2025 and beyond. These improvements are expected to stem from ongoing optimizations designed to lower operating costs. The firm’s reiteration of a Buy rating and the increased price target reflect confidence in Largo’s strategic adjustments and their potential to positively influence the company’s financial outlook. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading near its Fair Value, with additional insights and eight more exclusive ProTips available to subscribers.
In other recent news, Largo Resources has reported its production results for 2024, revealing a 4% decrease in vanadium production to 9,264 tonnes compared to the previous year. Despite this decline, the production numbers were within the company’s guidance range of 9,000 to 11,000 tonnes. The company also noted an 8% drop in vanadium equivalent sales, which totaled 9,600 tonnes, aligning with expectations. While annual ore production increased by 28% to 2.2 million tonnes, a 22% decline in the effective ore grade mined and a 5% decrease in recovery rates negatively impacted vanadium output. On a more positive note, Largo successfully ramped up its ilmenite concentrate production to 44,863 tonnes, closely matching sales volumes. In response to these mixed results, H.C. Wainwright adjusted its price target for Largo Resources to $3.70 from $4.20 but maintained a "Buy" rating, citing the company’s cost-cutting efforts and future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.