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Stockchase Opinions

Stockchase InsightsNeo Performance Materials Inc. NEO.TOHOLDMar 25, 2022

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The valuation is attractive at 11x earnings, compared to other mining names. It is a market leader in Canada for rare earth metals. There is an anticipated revenue decline, which is related to commodity prices moderating to lower levels. The company’s revenues are a function of volume and realised price of the metals sold. Unlock Premium - Try 5i Free

$15.87

Stock price when the opinion was issued

$35.08

As of Jun 19, 2026. Market Open.

Mining
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HOLD

Attracted to prospects of company.
Dividend aggressive in the past, but believes can sustain long term.
Energy transition materials will be in high demand. 
Does not own shares in the company. 

BUY

He bought, sold and recently bought back shares. ONe of the few companies in the world that can process rare earths into valuable materials for catalytic converters and magnetic motors for EVs. So, there's huge growth ahead. Announced a new plant in Europe to supply Euro car makers. Stock is cheap, albeit with some volatility. It's a way of playing EVs with less risk.

TOP PICK
It is a global leader in the processing of rare earth materials to make highly engineered industrial materials and magnets used in micro-motors, etc. Also a global leader in supplying the automotive industry and EV market. It is building a new plant in Europe where there are good opportunities. It is very profitable, generates cash and has no debt. At 4X EBITA it is much better today than before and pays a dividend of about 4%. A strategic buyer in Australia, Hastings Technology, just bought 20% of NEO at $15 per share. Also insiders have been buying recently. It is a takeover candidate. Buy 6, Hold 0, Sell 0 (Analysts’ price target is $18.50)
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Cannacord reduced their price target for the company today, which could be the reason for recent weakness. The company is cash rich on the balance sheet. Currently trading at 8x earnings. Oversold and could buy today. Unlock Premium - Try 5i Free