The analysts at Raymond James recently began covering shares of rare earth technology company Ucore Rare Metals (WKN A2QJQ4 / TSXV UCU). The experts conclude that the stock is fairly valued at CAD 14.50 for the time being and also gave Ucore an “outperform” rating. Ucore is currently trading at CAD 5.69, resulting in a price potential of around 155%.
In particular, the development of a vertically integrated rare earth supply chain for North America is the decisive aspect that prompted Raymond James to make this positive assessment. Above all, the company’s proprietary rare earth separation technology (RapidSX) and the planned Strategic Metals Complex in Alexandria, Louisiana, USA, convince the analysts.
Ucore Rare Metals is well positioned in the market, as CEO Pat Ryan’s company relies on a differentiated midstream processing model, has already entered into strategic partnerships to secure raw materials, and has a scalable technology platform.
In any case, Raymond James analysts assume that Ucore Rare Metals will benefit from the increasing importance and demand for North American / US rare earth production. Because the latest developments, despite a currently possible agreement between the presidents of China and the USA, have made it more than clear that the West must reduce its dependence on the Middle Kingdom.
