Tmc The Metals Company: Wedbush Raises Valuation on Optimism
(About StockTargetAdvisor.com (STA Research): Is a Canadian investment research company, consisting of Financial Professionals specializing in advanced stock research and analysis)
Wedbush raised their 12 month target price for The Metals Company Inc. from $6 to $11, reflecting a significantly more optimistic view of the company's future. This upward revision is driven by several key factors. First, the recent executive order supporting critical mineral development has bolstered confidence in the regulatory environment, providing a favorable backdrop for the company's deep sea mining operations. Second, The Metals Company has strengthened its balance sheet, improving its financial stability and ability to fund ongoing and future projects. Lastly, there is growing momentum around U.S.-backed initiatives focused on deep sea mining, positioning the company at the forefront of a strategic sector vital to the country's resource independence and clean energy transition. Collectively, these developments enhance the company's long-term growth prospects and justify the more aggressive price target.
Stock Forecast & Analysis
Analyst sentiment toward The Metals Company (TMC) is cautiously optimistic, with a consensus 'Buy' rating and as 12 month target price forecast of $9 per share. While TMC has strengthened its financial position with $81 million in cash and progress on key permits, it remains a pre-revenue company with projected losses and significant capital needs through 2027. Growth forecasts are strong—around 64% annual earnings growth and over 100% revenue growth—but investors face risks such as regulatory delays, high production costs, and environmental concerns. Overall, while deep-sea mining has strategic backing, it remains a speculative and volatile investment.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
2 minutes ago
- Globe and Mail
AbbVie Rises 11.5% in a Month: Buy, Hold or Sell the Stock?
AbbVie 's ABBV stock has risen 11.5% in the past month, mainly due to its beat-and-raise performance in the second quarter. AbbVie announced its second-quarter results on July 31. It beat estimates for both earnings and sales. Earnings of $2.97 per share rose 12.1% year over year. Revenues of $15.42 billion rose 6.6% year over year on a reported basis, driven by robust sales of key drugs like Rinvoq, Skyrizi, Venclexta and Vraylar, coupled with significant contributions from newer drugs, namely Ubrelvy, Elahere, Epkinly and Qulipta. Sales of Humira and Imbruvica declined year over year. AbbVie also raised its revenue and EPS guidance for 2025 for the second time this year, backed by a strong momentum in the first half. The company expects adjusted EPS to be in the range of $11.88-$12.08, up from the previous guidance of $11.67-$11.87. Total revenues are expected to be approximately $60.5 billion, higher than the previous expectation of $59.7 billion. However, a single quarter's results are not so important for long-term investors, and the focus should rather be on the company's strong fundamentals. Let's understand the company's strengths and weaknesses to better analyze how to play ABBV stock amid the post-earnings price gain. ABBV's Successful New Drugs — Skyrizi and Rinvoq AbbVie lost patent protection for its blockbuster drug, Humira, in the United States in January 2023 and in the EU in 2018. Humira's sales are declining due to loss of exclusivity ('LOE') and biosimilar erosion. However, AbbVie has successfully navigated the LOE of Humira by launching two other successful new immunology medicines, Skyrizi and Rinvoq, which are performing extremely well, bolstered by approvals in new indications and are expected to support top-line growth in the next few years. Sales of Skyrizi and Rinvoq have successfully replaced Humira, which once generated more than 50% of its total revenues. Skyrizi and Rinvoq generated combined sales of $11.6 billion in the first half of 2025. The drugs are seeing strong performance across all approved indications, especially in the popular inflammatory bowel disease (IBD) space, which includes two conditions — ulcerative colitis (UC) and Crohn's disease (CD). Importantly, Skyrizi and Rinvoq have demonstrated compelling head-to-head data against several novel therapies in clinical studies, which have given them a competitive advantage. Skyrizi sales are now annualizing at almost $18 billion and Rinvoq at over $8 billion. AbbVie expects combined sales of Skyrizi and Rinvoq to be more than $25 billion in 2025 and more than $31 billion by 2027(Skyrizi: more than $20 billion; Rinvoq: more than $11 billion). Strong immunology market growth, market share gains and momentum from new indications, such as the recent launch of Skyrizi in UC, as well as the potential for five new indications for Rinvoq over the next few years, are expected to drive these drugs' growth. AbbVie expects to file a regulatory submission for Rinvoq for the alopecia areata indication later this year. In addition, phase III data with Rinvoq in vitiligo are expected later in 2025, followed by hidradenitis suppurativa and systemic lupus erythematosus Phase III readouts in 2026. AbbVie believes that the next wave of potential approvals for Rinvoq could add roughly $2 billion to peak-year sales for the product. ABBV's Growing Oncology Portfolio AbbVie has built a substantial oncology franchise with Imbruvica and Venclexta. Its oncology segment generated combined revenues of $3.3 billion in the first half of 2025, up 4.2% year over year as higher sales of Venclexta and contributions from new drugs, Elahere and Epkinly, more than offset the decline in Imbruvica sales. Some key oncology drugs approved in the past couple of years are Epkinly and Emrelis. Elahere was added to AbbVie's oncology portfolio with the February 2024 acquisition of Immunogen. AbbVie is also strengthening its portfolio of oncology medicines with the addition of antibody-drug conjugates or ADCs, which are being considered a disruptive innovation in the pharmaceutical industry. ADCs will allow better treatment of cancer by harnessing the targeting power of antibodies to deliver cytotoxic molecule drugs to tumors. The company now has two ADCs in its commercial portfolio (i.e., Elahere and Emrelis) and two additional ADCs in late-stage development (ABBV-400 and pivekimab sunirine), along with some others in early-stage development. AbbVie's neuroscience portfolio is also contributing to top-line growth. Sales of its neuroscience drugs increased 20.3% to almost $5 billion in the first half of 2025, driven by higher sales of Botox Therapeutic, depression drug Vraylar and newer migraine drugs Ubrelvy and Qulipta. AbbVie on an Acquisition Spree AbbVie has been on an acquisition spree in the past couple of years to bolster the early-stage pipeline that should drive long-term growth. Particularly, it is signing several M&A deals in the immunology space, its core area, while also signing some early-stage deals in oncology and neuroscience areas. AbbVie has executed more than 30 M&A transactions since the beginning of 2024. A key deal was the April 2025 licensing agreement with Denmark's Gubra to develop GUB014295 (ABBV-295), a long-acting amylin analog for the treatment of obesity. The deal marked AbbVie's entry into the obesity space, dominated by Eli Lilly LLY and Novo Nordisk NVO. AbbVie plans to invest further in obesity. AbbVie recently closed the acquisition of privately held biotech Capstan Therapeutics, which will add Capstan's lead asset, CPTX2309 — a potential first-in-class in vivo tLNP anti-CD19 CAR-T therapy — to its immunology pipeline. ABBV's Slowing Aesthetics Sales & Humira Erosion Sales of AbbVie's blockbuster drug Humira are declining due to biosimilar erosion. The launch of Humira biosimilars in the United States in 2023 significantly eroded the drug's sales in 2024, with the decline being sharper in 2025 as more plans excluded branded Humira and moved to exclusive biosimilar contracts. Humira sales declined more than 50% in the first half of 2025. AbbVie expects Humira's access in the United States to continue to decrease through the second half as more plans select exclusionary formularies for existing patients. AbbVie is seeing declining sales of Juvederm fillers due to continued macro challenges and weakened consumer sentiment. The slowing growth of the U.S. facial injectables market and persistent economic headwinds, which are impacting consumer spending in some countries, including the United States, are hurting sales of Juvederm due to its higher price point. Juvederm sales declined 22.2% in the first half of 2025. ABBV Stock Price, Valuation and Estimate Revision AbbVie's stock has gained 19.3% so far this year against a decrease of 1.1% for the industry. The stock has also outperformed the sector and the S&P 500 index, as seen in the chart below. ABBV Stock Outperforms Industry, Sector & S&P 500 From a valuation standpoint, AbbVie is not very cheap. Going by the price/earnings ratio, the company's shares currently trade at 15.31 forward earnings, higher than 14.46 for the industry. The stock is cheaper than some other large drugmakers like Eli Lilly, AstraZeneca and J&J, but is priced much higher than most other large drugmakers. The stock is also trading above its five-year mean of 12.68. ABBV Stock Valuation The Zacks Consensus Estimate for 2025 earnings has declined from $12.03 per share to $12.02, while that for 2026 has increased from $14.08 to $14.31 per share over the past 30 days. ABBV Estimate Movement Stay Invested in ABBV Stock Though AbbVie faces its share of near-term headwinds, the company has faced its biggest challenge — Humira's patent cliff — quite well and looks well-positioned for continued strong growth in the years ahead. AbbVie is returning to robust revenue growth in 2025, which is just the second year following the U.S. Humira LOE, driven by its ex-Humira platform. Sales of AbbVie's ex-Humira drugs rose more than 22% (on a reported basis) in the quarter, driven by Skyrizi, Rinvoq and neuroscience drugs. Boosted by its new product launches, AbbVie expects to return to mid-single-digit revenue growth in 2025 with a high single-digit CAGR through 2029, as the company has no significant LOE events for the rest of this decade. A substantial portion of this growth is expected to be driven by the robust performance of Skyrizi and Rinvoq. With no significant LOEs in this decade, AbbVie enjoys the flexibility to invest more in R&D to continue to acquire external innovation. Rising stock price and estimates (for 2026), its solid pipeline and the fact that it is entering the second half of the year with substantial momentum are good enough reasons to stay invested in this Zacks Rank #3 (Hold) stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. #1 Semiconductor Stock to Buy (Not NVDA) The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow. One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Novo Nordisk A/S (NVO): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report
Globe and Mail
2 minutes ago
- Globe and Mail
Market Factors: Natural gas setup looks really promising
In this edition of Market Factors we start with why the depressed natural gas sector may turn out to be a huge opportunity. In part two, a prominent strategist is seeing cracks in the megacap market leadership. And the diversion looks at my favourite movie soundtracks. I've been touting the growth story in natural gas while the commodity price hovers near 25-year lows, so I suppose I owe readers an explanation. I not only believe in the story, but also think things are progressing in a way that will be extremely lucrative for investors if the 2026 demand outlook unfolds as predicted. Natural gas production has significantly exceeded demand this year and this successfully smothered the commodity price. The current end of summer inventory levels are close to record highs thanks to year-to-date production increases of over a billion cubic feet per day. On Tuesday, BofA Securities commodity strategist Clifton White wrote that since 2019, Western Canada natural gas demand growth has come almost exclusively from industrial companies and utilities. Demand from these sources has flagged, increasing oversupply conditions. Now for the good news for investors. Historically the only outlets for domestic natural gas production were pipelines flowing to the U.S. and Eastern Canada. Now, however, the LNG Canada facility on the B.C. coast is operational and gives Canadian gas producers access to global markets. Mr. White believes that LNG Canada 'will cause Western Canada inventories to flip from near record highs this fall to near 10-years lows by the end of summer 2026 [and this] … will lead to stronger AECO prices and fewer Canadian exports to the U.S. next year.' For the natural gas sector, business conditions are bad now and forecast to get much better next year. Theoretically, an investor might be able to find a related stock at depressed prices now, and benefit as conditions improve. We should have a few months of research to attempt to uncover this opportunity. The accompanying table using RBC Capital Markets data can provide a guide to further study. Each stock's leverage to gas prices, valuations in terms of enterprise value to debt-adjusted cash flow and recent performance are included. As always, there are risks for investors. Global natural gas demand, operational issues at LNG Canada and excess production are only three potential events that could screw up this potentially profitable trade. It is still worth further study in my opinion. Megacap stocks have dominated markets since 2015 but one strategist now sees cracks in the trend. A shift in the market cycle from a downturn stage into recovery means smaller cap stocks will retake market leadership, according to BofA's Savita Subramanian. Ms. Subramanian grouped the S&P 500 into deciles and noted that the last Nifty Fifty run – significant outperformance by the largest 50 companies – occurred in the late 1990s. Back then, the outperformance lasted six years and the largest companies outperformed the broader benchmark by 71 percentage points. Currently the biggest 50 stocks have outperformed the benchmark by 73 percentage points since 2015. The average balance sheet quality of today's top 50 is well below the late 1990s. Average valuations are near record highs while growth expectations are, despite the substantial growth forecasts for the magnificent seven, unspectacular overall. The switch to a recovery market cycle historically means that economically sensitive, higher beta (market sensitivity), smaller market cap stocks outperform. Ms. Subramanian expects stocks with lower valuations (in terms of forward PE ratios), above median beta, below median market cap and buy-rated at BofA to outperform. Her screen by these factors uncovered United Airlines Holdings Inc., Halliburton Co., Expedia Group Inc. and lululemon athletica Inc. The MakeUseOf site posted their picks for most underrated movie soundtracks and there are some interesting selections. I hadn't thought of The Last American Virgin as having great music but on review the soundtrack looks great. My picks for favourite soundtracks begin with John Hughes movies, notably the Eric Stoltz and Mary Stuart Masterson classic Some Kind of Wonderful. The Flesh for Lulu song I Go Crazy seals it for Some Kind of Wonderful because that song was impossible to find at the time. (The phenomenon of being completely unable to listen to a song you like must be inexplicable to modern generations. Led Zeppelin's Say Hey Woman was another example). Classics like Wizard of Oz and Singin' in the Rain must be mentioned when the soundtrack topic comes up. For the '80s Purple Rain and then in the '90s there's Singles. The High Fidelity soundtrack is quirky and amazing. Donnie Darko, Trainspotting, Grease, Saturday Night Fever are all notable. I just thought of The Commitments for the first time in at least 25 years because of its terrific and timeless music. What are your favourites? Looking for our updates on market movers, analyst actions, stock technicals, insider trades and other daily, weekly and monthly insight? Click here to visit our Inside the Market page. A look at how this week's inflation report has shifted market and economist views for future Bank of Canada rate cuts The latest Reuters polling of equity strategists and portfolio managers finds a bullish bunch when it comes to the TSX - but less so for the S&P 500 Jamie McGeever takes a closer look at how markets and Donald Trump are in a delicate policy dance Reuters' Ron Buosso on why the Ukraine outcome is insignificant for oil markets The data calendar starts with industrial product prices for July on Thursday when economists expect a 0.3 per cent month-over-month increase. Retail sales for June follows the next day and consensus is looking for a 1.5 per cent rise for the headline number and 0.8 per cent jump ex-autos. Bank earnings are the highlight for Canadian investors in the coming week. Bank of Montreal ($2.942 per share expected) and Bank of Nova Scotia ($1.73) report Tuesday. Royal Bank ($3.317) and National Bank ($2.675) post numbers Wednesday. Dollarama ($1.152) also reports next Wednesday. American economic data of importance begins Thursday with S&P Global U.S. Manufacturing PMI (49.7 expected), which provides an early look at August results. The leading index for July (-0.1 per cent month over month) is also out Thursday but that index has been providing deceptively negative results of late. Preliminary durable goods orders for July (-4.0 per cent month over month) will be released next Tuesday. We'll get corporate results from Walmart Inc. ($0.733) on Thursday and the 27th will see earnings reports from Crowdstrike Holdings Inc. ($0.832) and the big one, Nvidia Corp. ($1.005). See our full earnings and economic calendar here
CBC
3 minutes ago
- CBC
City chooses 5 sites for new supportive housing complexes in Winnipeg
Five building sites across Winnipeg have been chosen for new supportive housing residences that will provide shelter for people facing challenges, including those who are homeless. In a statement from the city, Mayor Scott Gillingham said the sites represent the first phase of a plan, and more locations will be announced next year. The five sites are vacant city-owned properties. Construction is to begin next year. The locations are: 546 Sherburn St. 1168/1172 Plessis Rd. 626 Stella Ave. 2546 McPhillips St. 75 Poseidon Bay (corner of parking lot, next to Taylor Avenue). Supportive housing is a type of affordable housing that includes wraparound health, wellness and safety services on site. It's designed to help people at certain life stages or with challenges like health issues, disabilities or other barriers to housing, says a city document, which includes maps of the sites. Candidates for the housing include refugees and refugee claimants, people leaving hospitals, youth exiting care, people transitioning from homeless encampments, people at risk of gender-based violence and people with mental health needs. On-site support will be available to help people to manage health needs, build daily living skills and connect with other services in the community. "It helps people live more stable, independent and respectful lives," the city says on its website. The sites were selected from May to July, with rezoning scheduled to take place in September and construction next year. Partners to design and develop the buildings and non-profit agencies to provide services and operate the buildings will be chosen at some point this fall. The city is holding three open houses in early September to provide the public with more information on the developments and rezoning process. Transcona East End Community Centre — Sept. 2 (4 p.m. to 6 p.m.). Cindy Klassen Recreation Complex — Sept. 3 (5 p.m. to 7 p.m.). Bill and Helen Norrie Library — Sept. 4 (4:30 p.m. to 6:30 p.m.). The city will apply to rezone the land following the open houses. A public hearing on the rezoning is scheduled for Sept. 12.
