Wall Street Bullish on Nouveau Monde Graphite Inc. (NMG) amid Significant Graphite Deals

Nouveau Monde Graphite Inc. (NYSE:NMG) is one of the Canadian penny stocks to buy right now. On November 13, Roth MKM analyst Joseph Reagor reiterated a Buy rating on Nouveau Monde Graphite Inc. (NYSE:NMG) with a $4.70 per share price target. The positive stance came on the heels of National Bank analyst Mohamed Sidibe upgrading the stock to Outperform from Sector Perform with a C$5 price target.

The wave of positive ratings on Wall Street follows the company’s securing multiple commercial agreements for its Phase 2 graphite production. It has already inked binding supply agreements with the Canadian government and revised off take deals with existing customers.

The Canadian government has already signed a seven-year off-take agreement for 30,000 tons per annum of graphite concentrate. The supply agreement also includes 15,000 tons per annum on a take-or-pay basis at a fixed North American market price. Nouveau Monde Graphite has inked a commercial agreement with Traxys North America for 20,000 tons per annum of graphite concentrate.

Nouveau Monde Graphite Inc. (NYSE:NMG) develops a fully integrated, carbon-neutral supply chain to produce high-purity, battery-grade graphite materials for the electric vehicle (EV) and renewable energy storage markets. The company operates a mine in Quebec to extract natural graphite, which is then processed into advanced anode material at its Bécancour facility.

While we acknowledge the potential of NMG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NMG and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.