Neo Lithium Corp V.NLC

Stifel

[retiredcf]

In response to its deal to be acquired by Zijin Mining Group Co. Ltd, Stifel analyst Anoop Prihar moved Neo Lithium Corp.  to “hold” from “buy” with a $6.50 target, up from $5.80. The average is $6.63.

“The offer represents a 36-per-cent premium to NLC’s 20-day VWAP [volume-weighted average price] and an 18-per-cent premium to NLC’s closing price on October 8. Because of the high quality nature of the 3Q Project, there is a possibility that a superior proposal will be made for the company, however, we would note that the $6.50 per share offer price is equivalent to our fundamental NAV for the project and higher than our previous target price of $5.80 per share. As such, we would recommend shareholders tender to the offer and, in conjunction, lower our rating to Hold to account for the proximity between the current market price and the tender price.”