Canadian gold mining company Kinross Gold (TSE:K)(NYSE:KGC) rejected a takeover offer from rival Endeavour Mining (TSE:EDV), Bloomberg reported. The move comes at a time when the mining sector is witnessing consolidation.
While both companies command almost identical market cap, Endeavour Mining stock appears attractive due to its low all-in-sustaining costs and industry-leading high EBITDA margin.
Per the report, Endeavour Mining, which is backed by Egyptian billionaire Naguib Sawiris, approached Kinross Gold with a cash and stock deal. However, the discussions didn’t move beyond the initial stage as both parties differed on the valuation.
It remains a wait-and-see story if these companies agree to revive talks. Meanwhile, let’s learn what analysts recommend for these two companies.
Is Kinross Gold Stock a Good Buy?
Kinross Gold stock has risen by over 33% in one year, benefitting from its stable production and higher average price realizations. However, higher costs remained a drag. Kinross Gold stock has a Hold consensus rating on TipRanks based on two Buy, two Hold, and one Sell recommendations.
At the same time, analysts’ average price target of C$8.01 implies 26.48% upside potential from current levels.
What is Endeavour Mining Price Target?
Endeavour Mining stock has underperformed Kinross Gold and is up about 20% in one year. However, its low-cost structure, high EBITDA margin, and the expected increase in production keep analysts bullish on its stock.
EDV has received nine unanimous Buy recommendations for a Strong Buy consensus rating on TipRanks. Furthermore, analysts’ average price target of C$47.30 implies 50.45% upside potential.
