This Canadian graphene stock is a buy, analyst says

Paradigm Capital analyst Marvin Wolff said in a Sept. 30 research note that NanoXplore (NanoXplore Stock Quote, Chart, News, Analysts, Financials TSX:GRA) is set to benefit from its subsidiary VoltaXplore’s new Letter of Intent with Volatus Aerospace to supply proprietary Si-graphene-enhanced lithium-ion battery cells for next-generation unmanned drones.

Samples are now being tested, and Wolff said the technology is expected to be integrated into Volatus drones used in civil, defence, and Arctic surveillance applications. He highlighted the batteries’ ability to extend service times across challenging environments and said the agreement also “sends a clear message to global drone makers that a better battery solution is now available.”

Wolff maintained a “Buy” rating and C$8.15 target on NanoXplore, which is headquartered in Montreal and is the world’s largest low-cost producer of high-quality graphene.

He said that the company is “aggressively developing end-use markets by using graphene as a performance enhancer for a variety of different plastics with many different end products,” while also pursuing opportunities in drilling fluids and spray insulation. NanoXplore is expected to expand production capacity from 4,000 tonnes per annum to 20,000 tonnes plus 5,000 tonnes of SMC by 2029.

He also noted the company’s focus on the lithium-ion battery market, where VoltaXplore is advancing high-performance materials, including silicon anode solutions.

He applies a blended valuation of NanoXplore’s businesses, 12.5 times EV/EBITDA with a 12.5 per cent discount rate for graphene, and 10 times EV/EBITDA with a 15% discount rate for batteries, to arrive at his $8.15 target.

Wolff expects NanoXplore to report an Adjusted EBITDA loss of $1.5-million on revenue of $129.3-million in fiscal 2026, improving to Adjusted EBITDA of $19.8-million on revenue of $210-million in 2027.

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