Jefferies initiated coverage of Almonty Industries (NASDAQ: ALM) with a Buy rating. The firm set a price target of $26.25 for the stock.
China currently controls approximately 80% of the global tungsten supply. Jefferies expects Almonty to benefit from the re-shoring of critical minerals. New U.S. defense procurement restrictions will begin in 2027.
The company’s Sangdong mine in South Korea is one of the largest high-grade tungsten projects outside China. Jefferies identifies the commercial production ramp-up at Sangdong as the primary upcoming catalyst.
Growing demand from the AI, electrification, and defense sectors is creating supply bottlenecks in critical minerals. This initiation follows a broader Jefferies analysis of the sector.