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Investing.com - H.C. Wainwright has reiterated its Buy rating and $3.70 price target on Largo Resources Ltd. (NASDAQ:LGO), representing a ~168% upside from the current price of $1.38, following the company’s second-quarter 2025 production results released on July 15. According to InvestingPro data, the stock has declined about 20% year-to-date, with analysts maintaining a consensus Buy recommendation.
The vanadium producer, currently valued at $88 million in market capitalization, reported 5.0 million pounds of vanadium equivalent production in the quarter, representing a 16% decrease year-over-year but a 74% increase quarter-over-quarter. Total (EPA:TTEF) ore mined reached 485,687 tonnes, up 32% compared to the same period last year. InvestingPro analysis reveals 8 additional key factors affecting the company’s performance, available in the comprehensive Pro Research Report.
The company’s total waste increased to 3.8 million tonnes, a 43% rise year-over-year, while the effective grade of vanadium equivalent declined to 0.51%, down 26% from 0.69% in the second quarter of 2024.
Recovery rates improved significantly to 84.9%, marking a 14% increase from 74.3% in the comparable quarter of 2024. This improvement came despite the overall production decline for the period.
H.C. Wainwright expressed satisfaction with operational improvements at Largo’s Maracás Menchen Mine and stated that ongoing optimizations are likely to support continued production growth over the next several quarters.
In other recent news, Largo Inc. reported a substantial 74% increase in vanadium pentoxide production for the second quarter of 2025, totaling 2,256 tonnes. This marks a significant improvement from the first quarter, though it remains below the output from the same period last year. The company also noted a global recovery rate improvement to 84.9%, which is a 14% increase from Q2 2024. Largo’s joint venture, Storion Energy, signed a supply agreement with TerraFlow Energy for a 48 MWh flow battery project in Texas, set to begin in 2027. H.C. Wainwright reiterated its Buy rating on Largo, highlighting the company’s operational turnaround and production gains as key positive factors. However, the firm adjusted its price target from $3.90 to $3.70, citing first-quarter financial results that fell short of expectations. Despite this, H.C. Wainwright emphasized Largo’s successful cost-cutting measures, which are expected to enhance future cash flows. The firm remains optimistic about Largo’s potential for production growth, especially as the company improves mine access and drilling efficiencies.
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