Nouveau Monde Graphite Inc. (NMG): Long-Term Growth Amid Short-Term Challenges

Nouveau Monde Graphite Inc. (NYSE:NMG) is one of the best NYSE penny stocks to buy now. On January 30, H.C. Wainwright reiterated a Buy rating on Nouveau Monde Graphite Inc. (NYSE:NMG) but cut the price target to $5.50 from $7.50.

The price target cut is in response to a recent equity raise, as it is expected to result in significant dilution. A pushback on the projection of the first production in the first half of 2028 has also impacted valuation, leading to the new price target. Consequently, the research firm has revised its discounted cash flow model for the company. It expects it to yield a net asset value of $919 million or $3.51 a share. The new valuation takes into account the company’s cash balance of $68.8 million minus $11.6 million in debt.

Meanwhile, Maxim Group initiated coverage of Nouveau Monde Graphite Inc. with a Buy recommendation on January 20. Wall Street remains bullish on Nouveau Monde Graphite Inc. following the signing of multiple commercial agreements for Phase 2 graphite production. It has already inked a 7-year off-take agreement with the Canadian government for the uptake of 30,000 tons per annum of graphite concentrate.

Nouveau Monde Graphite Inc. (NYSE:NMG) develops an integrated, carbon-neutral, “ore-to-battery” graphite business in Québec. It focuses on mining (Matawinie Mine) and processing high-purity natural graphite into active anode materials for electric vehicle (EV) batteries, energy storage systems, and defense industries, aiming to supply the Western market.

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Disclosure: None. This article is originally published at Insider Monkey.