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Investing.com - Freedom Broker upgraded US Lime and Minerals (NASDAQ:USLM) from Hold to Buy on Thursday, while raising its price target to $125.00 from $105.00. The stock has demonstrated strong momentum with a 43.2% return over the past year, despite current trading levels suggesting slight overvaluation according to InvestingPro analysis.
The upgrade comes as the research firm expressed confidence in the company’s expansion plans, including the Texas kiln construction and the ramp-up of operations at Love Hollow, despite noting potential execution risks associated with these projects.
Freedom Broker acknowledged some risk factors, including a weaker-than-expected pricing environment in the first half of the year, though it observed that stronger demand is lifting volumes for the lime and minerals producer.
The firm highlighted US Lime’s strong financial position, describing it as a "cash-rich, debt-free model" with a robust liquidity buffer, further supported by high interest income.
Freedom Broker also noted the company’s consistent dividend payments, which it said "underscores confidence in cash flow generation and balance sheet strength," factors that contributed to the more bullish outlook on the stock.
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