On Friday, RBC Capital maintained its positive stance on NanoXplore (GRA:CN) (OTC: NNXPF), reiterating an Outperform rating with a steady price target of Cdn$3.25. This affirmation follows the company's release of its fourth fiscal quarter results, which surpassed consensus expectations, showcasing a record-breaking period for revenue, gross margins, and adjusted EBITDA.
The company's financial performance in the fourth quarter has been strong, with the results exceeding market expectations. The record figures for revenue and profitability metrics indicate a robust end to the fiscal year for NanoXplore. The company's guidance suggests further improvement, with gross margin expansion anticipated to be between 100 and 200 basis points in the fiscal year 2025.
RBC Capital highlighted the potential for continued growth in EBITDA, driven by operating leverage and increased volumes over the long term. The firm is optimistic about the company's innovative dry graphene process, which is expected to produce graphene at costs comparable to carbon black. This development could open new market opportunities for the company's graphene powder.
Despite acknowledging delays in the VoltaXplore project, RBC Capital does not see this as a significant concern for the market valuation of NanoXplore. The firm suggests that the market has not fully priced in VoltaXplore, and therefore, any progress could provide additional upside potential for the company's stock.
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