Horizonte Minerals PLC (LON:HZM)(TSX:HZM) has been given a ‘buy’ rating by broker Cantor Fitzgerald as it started covering the Brazil-focused nickel development company.

The AIM-listed company “offers good value to investors looking for exposure to the growing nickel market”, the broker said in a note to clients on Monday.

Horizonte has two top-tier nickel projects located in the Carajás Mining district in north east Brazil, with project financing underway for the lower-risk Araguaia project.

Araguaia will produce ferronickel for the stainless steel industry while work continues to develop the Vermelho project into a producer of nickel and cobalt sulphate for the battery and EV markets.

“Both projects show robust valuations even at low nickel prices,” said Cantor analyst Matthew O’Keefe.

A sum-of-parts net asset value estimate for Horizonte results in a 23p/C$0.40 per share target price, including adjusting for the expectation that the company will be successful in lining up project financing for Araguaia in 2021.