Why NioCorp Developments Stock Was a Winner on Wednesday
One pundit now tracking the company believes it has numerous advantages that make it compelling.
Specialty mining stock NioCorp Developments (NB 6.92%) was able to surmount the hump of Hump Day, closing more than 2% higher in price to contrast favorably with the S&P 500 index's 0.3% decline. A bullish analyst note was an immediate catalyst for the rise. Buy, says bull Freedom Capital Markets' Vitaly Kononov initiated coverage of NioCorp stock that day. He recommends it as a buy, with a price target of $8.70. That's a sturdy 31% higher than the company's most recent closing price.
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Kononov's take on NioCorp is based on several factors, according to reports. A critical one is that the company benefits from top-down U.S. government support, as the Trump administration has prioritized the development of rare-earth mining in the country. The pundit also wrote in his inaugural NioCorp note that the company will also benefit from demand from U.S. industrial companies that require rare-earth elements. Finally, Kononov waxed bullish about the quality of the company's deposits and its production, and said it had signed advantageous offtake contracts (in which a customer commits to buying output from a producer in advance). ExpandNASDAQ: NBNioCorp DevelopmentsToday's Change(-6.92%) $-0.42Current Price$5.65Key Data PointsMarket Cap$761MDay's Range$5.54 - $6.0952wk Range$1.59 - $12.58Volume63KAvg Vol5.1M A rare bird There aren't many rare-earth companies in the world, and only a handful are based in the U.S. This gives NioCorp vast, inherent potential, and on that basis alone, I'd be as optimistic as Kononov. The company certainly feels as if it's operating the right business at the right time in this nation's history.