The Elmet Group (ELMT) PT Raised to $25 at Needham
Needham analyst James Ricchiuti raised the price target on The Elmet Group (NASDAQ: ELMT) to $25.00 (from $21.00) while maintaining a Buy rating.
The analyst commented: "We view yesterday’s announcement of a $450MM committed investment by the Department of War (DoW) in The Elmet Group as a key development that enhances ELMT's position as a crucial supply-chain player in the domestic manufacturing and processing of critical tungsten and molybdenum materials and components. The multi-faceted agreement, which includes direct investments by the DoW in ELMT’s three main U.S. manufacturing operations, sent ELMT shares sharply higher. The agreement also includes strategic minority investments ELMT will be making in the restart of the Stringer tungsten mine in Nevada, as well as for a nearby APT concentrate plant majority owned by ELMT. In return for the investment, the DoW will receive redeemable preferred equity and warrants representing up to 20% of ELMT’s common stock. Reit Buy and raise T.P. to $25 from $21."