Falling more than 2% from its Friday closing price, NioCorp Developments (NB +4.71%) shares are bouncing back today after an analyst initiated coverage of the mineral development company and set a bullish price target.
As of 1:53 p.m. ET, shares of NioCorp are up 0.5%, tumbling from an earlier gain of 6.6%.
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A lower-risk project has this firm enthused
Initiating coverage with a buy rating, B. Riley has set a $12 price target on NioCorp stock. According to Thefly.com, B. Riley analysts predicated the outlook on the belief that the company's Elk Creek project is "one of the most de-risked critical minerals development projects in the U.S."
NASDAQ: NB
Key Data Points
With NioCorp stock closing at $4.99 yesterday, B. Riley's $12 price target represents 140% upside.
Located in Nebraska, the Elk Creek project contains a variety of critical minerals such as scandium oxide and ferroniobium, two minerals that aren't produced in the United States. In addition, NioCorp has identified rare-earth minerals at Elk Creek, including neodymium-praseodymium oxide and dysprosium oxide.
Is now the time to buy NioCorp stock before it rockets higher?
With the auspicious price target that B. Riley assigned to NioCorp stock, it's unsurprising that investors leaped at the chance to buy shares earlier today -- but that doesn't mean investors were smart to do so. Granted, the high price target is alluring, but NioCorp is still developing the asset, and there's no certainty that the project will come to fruition -- let alone be a profitable endeavor if it does commence commercial operations.
At this point, an investment in NioCorp should be left to those with high risk tolerances. Fortunately for those seeking more conservative options, there are plenty of other compelling mining stocks to consider.
