Almonty Industries (ALM) is poised to become the world's largest miner of tungsten outside of China and Russia, Oppenheimer said in a Monday note.

As the US Department of Defense implements bans on non-friendly-sourced critical materials and China restricts the export of tungsten and other rare earths, Almonty is expected to benefit from rising tungsten prices, the note said.

Almonty Industries is estimated to "roughly triple its production by 2027" and account for approximately 40% of the "friendly produced" tungsten, Oppenheimer added.

The firm initiated coverage on the stock with an outperform rating and a $7 price target.

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