Neo Performance Materials Maintains Buy Rating at Stifel Canada, Price Target Raised to C$22.00

Neo Performance Materials maintains a buy rating at Stifel Canada, with a raised price target to C$22.00. The company has been reiterated as a buy due to its strong performance and growth prospects. The price target increase reflects the company's potential for continued growth in the future.

Stifel Canada has recently raised its price target for Neo Performance Materials Inc. (NEO:CN) to C$22.00, maintaining a buy rating. The move comes on the heels of the company's strong second-quarter performance and increased guidance.

Neo Performance Materials reported second-quarter 2025 revenue of $115 million, surpassing Stifel's forecast of $106 million and the Street's expectation of $109 million. Adjusted EBITDA reached $19 million, representing a 38% beat compared to Stifel's estimate and a 36% beat versus consensus.

The company has raised its full-year 2025 EBITDA guidance to $64-68 million from the previous $55-60 million, reflecting a 14.8% increase at the midpoint. Neo has already generated $36.1 million in EBITDA year-to-date, suggesting approximately $30 million for the second half of 2025.

Stifel has updated its target price methodology to include value for Neo’s Estonia plant, citing executed offtake agreements and management’s increasing focus on Phase II at the facility. The firm applied a 2026E target multiple of 8.0x EV/EBITDA on its 2026E EBITDA estimate of $69 million while including a present value of projected EBITDA from the Estonia plant.

Neo Performance Materials has seen its share price increase by 60% over the past three months, expanding its valuation metrics significantly. Despite this rise, Stifel notes the company still trades at lower multiples compared to peers like MP Materials and Lynas (F:LYI).

References:
[1] https://www.investing.com/news/analyst-ratings/stifel-raises-neo-performance-materials-stock-price-target-to-c22-on-ebitda-beat-93CH-4186107
[2] https://ng.investing.com/news/transcripts/earnings-call-transcript-neo-performance-q2-2025-earnings-beat-expectations-93CH-2058203