iAnthus Capital Holdings Inc. C.IAN

upgrade

[TeamEddie]

 In the wake of the release of in-line third-quarter results, Paradigm Capital analyst J. Marvin Wolff raised his target for NanoXplore Inc. (GRA-X) to $4.85 from $3.85 with a “buy” rating (unchanged). The average on the Street is $3.07.

“With the graphene plant set to start commercial production soon and supply contracts under negotiation, we are maintaining our target EV/EBITDA multiple of 17.5 times using 2023 (a full year of 10,000-tpa graphene production), EBITDA of $48.5-million and a 7.5-per-cent discount rate (10 per cent prior), reflecting management’s strong execution ability and the retirement of production risk,” said Mr. Wolff. “We are increasing target price ... as the company nears commercial production. While the former Sigma operations will have short-term negative performance, we concentrate on the longer-term highly valued graphene production and value of the graphene production patents.”