Coverage initiated on The Metals Company as trading volume triples
Another milestone for The Metals Company as Wall Street investment firm initiates coverage, and rates the stock a 'buy'.
Wall Street brokerage, HC Wainwright, has initiated coverage of The Metals Company in a new milestone, as investor interest rises dramatically in the deep sea mining company.
The firm gave TMC a buy rating with a 12 month price target of $5.50, in line with consensus among analysts.
Coverage means the firm will now review and report on the company as part of its research activities and provide recommendations.
Initiation of coverage is an important milestone and usually coincides with increased trading volume and investor interest.
New highs yesterday
The news comes a day after a sharp rise in TMC trading activity, with the stock reaching a new 52 week high of $4.56, before closing at $4.45 yesterday.
Trading volume also surged to 24 million, more than triple the 3 month average.
It's speculated that the spike may have been prompted by a Wall Street Journal article on deep sea mining on the potential role of poly-metallic nodules in the energy transition supply chain.
TMC has also seen a flurry of media attention since its Q1 earnings call last Wednesday, which it described as a "watershed moment" as the company moves closer to commercial recovery. You can read our Q1 earnings coverage here, here and here.
Rising fortunes
The Metal Company’s stock has risen by over 80 percent in the past month and is up 390 percent over the last six months, following a change in its political fortunes and as it moves closer to harvesting deep sea minerals from the Pacific.
H.C. Wainwright is a respected US based investment bank and research firm known for covering high growth sectors including healthcare, technology, fintech, as well as metals and mining.
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