Stifel Canada on Wednesday reiterated its buy rating on the shares of Neo Performance Materials (NEO.TO) and its C$23.00 price target as it noted rising prices for Neodymium-Praseodymium (NdPr).

"NEO's share price has started to reflect the rapid increase in NdPr prices, but we believe consensus estimates and valuation still do not reflect the increase suggesting there could be more room for the stock to run. The rare earth industry has been front and centre for over a year, and commodity prices for NdPr are now higher the floor price of US$110/kg (US$99,790/ton) that was put in place by the DoW in their deal with MP Materials to purchase concentrate. All industry participants have moved to a more level playing field for now. NEO's share price is up 49% YTD (S&P/TSX: +6.5%) but estimates and valuation would suggest there is further upside potential. We plan to reassess our target price of C$23.00/sh alongside the company's fourth quarter results in a few weeks. A very basic sensitivity would suggest there could be the potential for up to 50% upside to our 2026E EBITDA, all else being equal," analyst Ian Gillies wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 27.27, Change: +1.17, Percent Change: +4.48