Largo Resources Ltd. (LGO) PT Raised to $4.80 at H.C. Wainwright

H.C. Wainwright analyst Heiko Ihle raised the price target on Largo Resources Ltd. (NASDAQ: LGO) to $4.80 (from $4.70) while maintaining a Buy rating.

The analyst commented: "On May 15, 2024, Largo Resources announced its 1Q24 financial results. During the quarter, the company recorded $42.2M in revenue, which yielded a net loss of $13.0M, or ($0.20) per share. As expected, results came in well below Largo’s 1Q23 results, including revenue of $57.4M and a net loss of $1.2M, or ($0.02) per share. Unsurprisingly, the 27% YoY decrease in revenue was primarily attributable to a notable reduction in the average vanadium price, which declined to $6.91 per pound (lbs) (-24% YoY). This net loss was further exacerbated by the company’s operating costs increasing to $49.7M (+8% YoY) following a scheduled plant shutdown in 1Q24 that led to lower global recoveries and higher operational expenditures. We reiterate our Buy recommendation on Largo and slightly increase our PT to $4.80 from $4.70. Our increased PT is driven by incorporating the company’s most recent balance sheet updates into our model."

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