Dahlman Rose Reiterates Buy Rating on Vista Gold Corp. (VGZ)

Dahlman Rose is out with a research report this afternoon, where it reiterates its Buy rating on Vista Gold Corp.

; it has a $22.72 price target on the stock. The Dahlman analysts cited the company's recent announcement that it would be increasing the maximum size of its financing to $33.8 million, from the previous maximum of $30.0 million. In addition, Vista has agreed to adjust the acceleration provision of the warrants issuable upon exercise of the special warrants to provide that the warrants will be canceled if not exercised within 25 business days (an increase from 15 days) after receipt of the early exercise request from the company. As for valuation, the analysts remarked, “We include these warrants, though they are not currently in the money, in our fully diluted share count. By our estimate, this takes our fully diluted share count up to 68.7MM shares. We have revised our target price and NAV to take into account the new share count and new net debt levels once the issuance is completed. Our new target price of US$22.72/sh continues to represent a significant value to investors.”