H.C. Wainwright sets $5.50 target for TMC the metals company stock

Published 20/05/2025, 12:24
H.C. Wainwright sets $5.50 target for TMC the metals company stock

Tuesday, H.C. Wainwright initiated coverage on TMC the metals company (NASDAQ:TMC) with a Buy rating and set a price target of $5.50, falling within the current analyst range of $5.60-$6.00. The stock, which has surged nearly 300% year-to-date according to InvestingPro data, reflects strong market interest in TMC’s pioneering role in the deep-sea mining industry, focusing on extracting polymetallic nodules containing nickel, copper, cobalt, and manganese from the Clarion Clipperton Zone (CCZ).

The CCZ, a 4.5 million square kilometer area of international waters in the Eastern Pacific, is one of the world’s largest known nodule deposits. TMC is approximately 1,300 nautical miles southwest of San Diego and has made significant progress in its operations, including pilot collection and environmental trials. The company’s market capitalization has reached $1.55 billion, reflecting investor optimism despite operating with moderate debt levels.

TMC’s efforts position the company as a leader in the industry as it navigates the complex process of seafloor nodule exploitation. This venture is particularly noteworthy as it involves no regulatory precedent, presenting both a unique opportunity and challenge for the company.

The analyst from H.C. Wainwright expressed confidence in TMC’s ability to commercialize these deep-sea minerals, which are essential components in various industries, including electronics and renewable energy technologies.

TMC’s stock rating comes at a time when the demand for these metals is increasing, and sustainable methods of sourcing are becoming more critical. Trading near its 52-week high of $4.56, the company’s advancements in deep-sea mining could potentially provide a new avenue for resource acquisition, aligning with global efforts to transition to greener technologies and practices. For deeper insights into TMC’s financial health and growth prospects, including 12 additional ProTips and comprehensive valuation metrics, explore InvestingPro’s detailed research report.

In other recent news, TMC the metals company Inc. announced a successful $37 million financing round aimed at advancing its commercial development plans. The funds, led by investment veterans Michael Hess (NYSE:HES) and Brian Paes-Braga, will support TMC’s operations as it awaits a potential commercial recovery permit. In a related move, TMC’s subsidiary, TMC USA, has applied for exploration licenses and a commercial recovery permit, covering significant areas in the Clarion Clipperton Zone. This step aligns with a new U.S. Executive Order that aims to expedite the exploration and recovery of deep-seabed minerals, signaling a strategic push for mineral independence.

The Metals Company has welcomed this order, which could mobilize private investment across various U.S. industries. CEO Gerard Barron emphasized the company’s decade-long investment in deep-sea science and technology, highlighting its commitment to responsible metal extraction. TMC’s proactive approach also includes engaging with NOAA for permits under the Deep Seabed Hard Mineral Resources Act, reflecting confidence in the U.S. regulatory framework. These developments come as TMC continues to focus on environmentally conscious mining methods, aiming to align with potential new regulatory frameworks.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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