Largo Resources Ltd. (LGO) PT Lowered to $4.20 at H.C. Wainwright

H.C. Wainwright analyst Heiko Ihle lowered the price target on Largo Resources Ltd. (NASDAQ: LGO) to $4.20 (from $4.40) while maintaining a Buy rating.

The analyst commented: "During the quarter, the company recognized revenue of $29.9M, which yielded a net loss of $10.1M, or ($0.16) per share. Revenue came in well below the $44.0M reported in 3Q23, while LGO's net loss was mostly in-line when compared to a loss of $11.9M, or ($0.19) per share, during the same period last year. The 32% YoY revenue decrease can be attributed to a significant decline in Largo's revenue per pound (lbs) of V2O5 to $6.46/lb (-25% YoY) since vanadium pricing remains quite weak. While $27.2M of revenue was driven by vanadium sales, an additional $2.7M stemmed from ilmenite sales, which is becoming a more and more important business for the company. We also note that a $1.1M gain on foreign exchange (net loss of $0.6M in 3Q23) improved the firm's net loss when compared to the previous year. Looking ahead, we believe that Largo remains well-positioned to benefit from operational efficiencies as management adapts to the challenges of a softer vanadium pricing environment. Reiterate Buy rating and adjust PT to $4.20 from $4.40"

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