Maxim Group analyst Tate Sullivan has maintained their neutral stance on FEAM stock, giving a Hold rating yesterday.
Tate Sullivan’s Hold rating for 5E Advanced Materials, Inc. is premised on several factors. The first factor is the company’s narrower than expected EBITDA loss in 3Q23 which led to a reduction in Sullivan’s expense forecasts. Additionally, Sullivan expects the company to successfully renegotiate an existing debt covenant that stipulates a maintained cash balance above $10.0M. This expectation stems from the company’s cost-cutting plans and efforts to raise additional capital.
Despite the company’s financial improvements, Sullivan maintains a Hold rating due to uncertainties surrounding the timing of large orders from potential boron and lithium customers. Moreover, the company’s balance sheet shows a decrease in cash and an increase in debt, which Sullivan believes will lead to the company raising equity in F3Q24 to fund operations. Furthermore, Sullivan maintains his forecast for the company’s initial revenue to start in FY25, despite the risk of potential delays in production.
According to TipRanks, Sullivan is a 5-star analyst with an average return of 13.9% and a 43.74% success rate. Sullivan covers the Industrials sector, focusing on stocks such as BWX Technologies, Nxu, and Performance Shipping.
In another report released yesterday, Robert W. Baird also downgraded the stock to a Hold with a $3.00 price target.
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5E Advanced Materials, Inc. (FEAM) Company Description:
5E Advanced Materials Inc is engaged in the advanced materials with a focus on critical decarbonization applications, including electric transportation, clean energy, and food security.
Read More on FEAM:
- 5E Advanced Metals downgraded to Neutral from Outperform at Baird
- 5E Advanced Materials Signs Standstill Agreement with Lender
- UPDATE – 5E Advanced Materials Announces Successful Delivery of Step-Rate Testing Results
- 5E Advanced Metals announces successful delivery of step-rate testing results
- 5E Advanced Materials Announces Successful Delivery of Step-Rate Testing Results
