Is 5N Plus stock a buy? (November, 2024)

Following the company’s third quarter results, Desjardins Securities analyst Frederic Tremblay has raised his price target on 5N Plus (5N Plus Stock Quote, Chart, News, Analysts, Financials TSX:VNP).

On November 4, VNP reported its Q3, 2024 results. The company posted Adjusted EBITDA of $15.6-million on revenue of $78.8-million, a topline that was up 25% year-over-year.

“Our strong results in the third quarter of 2024 reflect sustained growth momentum in our Specialty Semiconductors business, coupled with a stellar performance by our Performance Materials segment,” CEO Gervais Jacques said. “Our teams are also executing seamlessly on the operational front with our specialty semiconductor capacity initiatives, enabling us to meet near term contracted demand and to efficiently expand capacity in future. Given our strong results year to date, we now expect to be able to surpass our previously disclosed guidance range and to slightly exceed $50 million in Adjusted EBITDA for the full fiscal year.”

As reported by the Globe and Mail, Tremblay November 5 maintained his “Buy” rating on VNP and raised his price target on the stock from $8.50 to $8.75.

The analyst says it’s a good time to buy the stock.

“We view the current share price as a good entry point,” he wrote. “Quarterly fluctuations aside, we are pleased with VNP being on track to exceed its previously disclosed full-year guidance in 2024. Doing so would reinforce our view that the unchanged 2025 guidance is conservative. Operationally, recent and upcoming capacity increases support VNP’s strong positioning in its core growth markets.”