Cormark Securities raised the target on Neo Lithium Corp. to $6.50 from $6, and maintained the Buy rating on the stock.
Our view of the stock is Neutral with a score of 5 out of 10, where 0 is very bearish and 10 very bullish.
What to like:
High market capitalization This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable. Superior return on equity The company management has delivered better return on equity in the most recent 4 quarters then its peers, placing it in the top quartile. Superior capital utilization The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile. Positive free cash flow The company had positive total free cash flow in the most recent four quarters. Superior Earnings Growth This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.
What to not like:
High volatility The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock. Overpriced compared to earnings The stock is trading high compared to its peers on a price to earning basis and is above the sector median. Overpriced compared to book value The stock is trading high compared to its peers median on a price to book value basis. Negative cashflow The company had negative total cash flow in the most recent four quarters. Overpriced on free cash flow basis The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors.
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