Largo Resources Ltd. (LGO) PT Lowered to $2.80 at H.C. Wainwright
H.C. Wainwright analyst Heiko Ihle lowered the price target on Largo Resources Ltd. (NASDAQ: LGO) to $2.80 (from $3.10) while maintaining a Buy rating.
The analyst commented: "During the quarter, the company produced 2,616 tonnes (t) (+102% YoY) from the Maracás Menchen Mine and sold 2,141t of vanadium pentoxide equivalent (V2O5). We note the firm's 91% YoY increase in total ore mined, which reached 852,046t, and 17% YoY growth for an effective ore grade of 0.48% V2O5. We also emphasize continued operational improvements, which should ultimately allow the firm to achieve significantly higher production levels in 1Q26. In short, we view Largo's significant production growth as validation of its operational turnaround initiatives. This should also create a pathway for higher revenues and cash flow. Management expects to sell over 300t of additional high-purity vanadium in the near term following the removal of tariffs on Brazilian vanadium during the quarter, thereby supporting stronger than anticipated revenue estimates for 2Q26. We reiterate our Buy rating on Largo even as we slightly decrease our PT to $2.80 from $3.10. Our decreased PT is primarily driven by some updates to our model that reflect LGO’s most recent balance sheet snapshot. Our overall value for the firm remains based on a DCF for the Maracás Menchen Mine."