Q: What are your expectations for this company? What would be a good entry point?
5i Research Answer:
We like NEO here - it is one of the better-positioned rare earth and critical minerals processors outside of China, with exposure to magnets, catalysts, and specialty metals that have real structural demand from EVs, defense, and industrial automation. The stock has had a strong run, up over 160% in the past year, but fundamentals have been improving alongside it.
Given the recent pullback, we would not try to time a perfect bottom - the critical minerals theme has real legs and NEO is one of the cleaner ways to play it in Canada, we would be comfortable buying around its current levels of $23.