Analyst Upgrade Sparks Surge in Almonty Shares

A dramatic reassessment from DA Davidson sent shares of Almonty Industries soaring, following the investment bank’s decision to significantly raise its price target. The new target was set at $11.00, a substantial 57% increase from the previous $7.00, driven primarily by a sustained upward trend in tungsten prices.

The market response was swift and decisive. After closing at $6.69 on Monday, the stock opened Tuesday’s session at $7.07 and climbed over 6%. Trading activity surged, with volume reaching an impressive 921,487 shares.

Bullish Outlook Driven by Commodity Trends

In its analysis, DA Davidson pointed to “significant upward momentum in tungsten prices” as the core reason for its bullish stance. The firm also noted that Almonty stands to benefit from positive developments in molybdenum pricing. While the bank maintained its “Buy” rating, the sheer magnitude of the price target revision caught the attention of even the most optimistic market observers.

This latest endorsement adds to a growing list of positive analyst coverage for the company. Earlier in August, both Oppenheimer and Cantor Fitzgerald initiated coverage on the stock with “Outperform” and “Overweight” ratings, respectively. However, it is worth noting that Weiss Ratings issued a caution on the title at the end of September.

Should investors sell immediately? Or is it worth buying Almonty Industries?

Key Milestones and Strategic Shift

The timing of this optimistic analysis is not coincidental. Almonty is on the verge of recommencing tungsten mining operations at its Sangdong mine in South Korea, with production slated to begin in the fourth quarter of 2025. This timeline aligns with forecasts of global tungsten shortages that are expected to drive prices higher.

The company has successfully navigated several critical milestones in its preparation:
– A successful $90 million IPO on the Nasdaq
– Inclusion in the TSX30 list of top performers
– A strategic realignment focusing on Western defense and technology sectors

Sangdong Mine Nears Production Phase

Positioned to become one of the largest tungsten mines outside of China upon reaching full capacity, the Sangdong project is a central catalyst for the company’s future. Mine construction is virtually complete, and the project is now in its final pre-production stage.

From a technical perspective, the equity is demonstrating considerable strength. The stock had already achieved a new 52-week high on Monday, prior to receiving the additional boost from the analyst upgrade. The successful execution of the long-awaited restart at the South Korean mine will be the critical factor to watch in the coming weeks.