UPDATE: Canaccord Genuity Upgrades Alamos Gold as Operational Momentum is Expected to Continue
In a report published Friday, Canaccord Genuity analyst Rahul Paul upgraded the rating on Alamos Gold (NYSE: AGI) from Hold to Buy, and reiterated the C$20.00 price target.
In the report, Canaccord Genuity noted, “We are upgrading Alamos Gold to BUY from Hold following the release of better than expected Q3/13 results. Alamos currently trades at a premium to the group (0.84x P/NAV vs. the junior producer average of 0.70x), but we believe the premium is justified in light of the attractive low-cost production growth profile and a cash-rich debt-free balance sheet, which should support further cash flow growth and shareholder value creation even in a low gold price environment. In recent times, investors have demonstrated a willingness to pay a premium for quality and lower risk - a trend that we expect to continue over the next 12 months potentially supporting further multiple expansions for defensive stocks like Alamos. In addition, we view 2013 guidance as very conservative in light of very strong year-to-date performance and anticipate that potentially better than expected operating results should help drive further outperformance in the stock price.”
Alamos Gold closed on Thursday at C$16.61.
Latest Ratings for AGI
|Jul 2016||Bank of America||Assumes||Buy|
|Jun 2016||Credit Suisse||Assumes||Neutral||Outperform|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.