Brokerage Stifel has initiated coverage of Sovereign Metals Ltd (ASX:SVM, OTC:SVMLF, AIM:SVML) with a buy rating and a 65p price target.
Analysts cited the development of Sovereign’s Kasiya project in central Malawi as key to the company’s investment thesis.
“Within five years of its discovery, Kasiya has rapidly demonstrated potential to become a significant producer of two critical minerals: natural rutile, the purest form of titanium dioxide, and flake graphite.
“With a considerably lower carbon footprint and cost profile, the project has an opportunity to be an important component of an independent, ethical, and environmentally friendly supply chain for battery materials.”
Sovereign’s shares were swapping for 32.4p in Monday afternoon trades.