Analyst Rene Cartier of BMO Capital maintained a Buy rating on Capstone Copper, boosting the price target to C$14.00.
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Rene Cartier has given his Buy rating due to a combination of factors that enhance Capstone Copper’s financial and operational outlook. The recent partnership with Orion on the Santo Domingo project, despite a slightly lower valuation than expected, is seen as a significant de-risking event. This partnership, which includes a substantial cash consideration and contingent upside, strengthens Capstone’s balance sheet and provides financial flexibility for future growth.
Additionally, the strategic arrangement allows Capstone to leverage its experience from previous projects, potentially leading to more efficient operations and cost reductions. The company’s ability to retain a buyback option further adds to its strategic flexibility. Overall, these developments, coupled with a diversified asset base, position Capstone Copper favorably for production growth and value accretive opportunities, justifying the Buy rating.
Cartier covers the Basic Materials sector, focusing on stocks such as Marimaca Copper, Altius Minerals, and Gold Royalty. According to TipRanks, Cartier has an average return of 30.1% and a 65.53% success rate on recommended stocks.
In another report released today, Raymond James also maintained a Buy rating on the stock with a C$14.00 price target.