UPDATE: Morgan Stanley Initiates Eldorado Gold at Overweight
Morgan Stanley initiated coverage on Eldorado Gold (NYSE: EGO) with an Overweight rating and a $19 price target.
Morgan Stanley noted, "EGO should re-rate as growth projects are de-risked. It has (i) a strong growth profile (25% CAGR in 2012-16); (ii) growth projects with lowest capex/EBITDA in our coverage, providing safety from cost overrun risks; (iii) low-cost mines that support margins, costs should decline even further; and (iv) low near-term M&A risk. … Execution concerns on EGO may be overdone. EGO received an environmental permit at Certej in Romania in 3Q. Perama Hill (its only Greek project that needs a permit) has been “fast tracked” by the government, and management expects a permit in 4Q12. Risk to 2012-14e earnings from project delays looks minimal."
Eldorado Gold closed at $14.79 on Thursday.
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