UPDATE: Citigroup Reiterates Neutral Rating, Raises PT on Silver Standard Resources Following Lowered EPS Estimate

In a report published Monday, Citigroup analyst Brian Yu reiterated a Neutral rating on

, and raised the price target from $7.00 to $8.00. In the report, Citigroup noted, “After updating our model for lower 2Q results and new guidance, we are lowering our 2013 EPS estimate to -$0.72 from -$0.38. However, cost reduction efforts and the future benefit of 2Q stockpile write downs drive an increase in our 2014 estimate to -$0.40 and our target price to $8/sh, maintaining Neutral as ample liquidity offsets our cautious view of silver pricing. Through 1H13, major project spending totaled $7.6 mln with full year project capex guidance remaining at $17 mln. At Pitarrilla, EIS documents were submitted as planned and the company expects approval by year-end. Pre-construction work continues and SSRI has received bids for EPCM work (typically 10-15% of project costs) and is in discussions with equipment suppliers. Based on preliminary talks, there are opportunities to reduce project costs given the broad slowdown in mining capex and project deferrals. SSRI is also engaged in talks with potential partners on the project while exploring other funding options as well. At the San Luis project in Peru, negotiations with the Ecash community continue over surface use agreements necessary to secure permits and move to a construction decision.” Silver Standard Resources closed on Friday at $7.84.