H.C. Wainwright analyst Heiko Ihle has reiterated their bullish stance on MUX stock, giving a Buy rating today.
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Heiko Ihle has given his Buy rating due to a combination of factors surrounding McEwen Mining’s strategic growth initiatives and financial outlook. Despite a year-over-year decline in revenue and production challenges, the company is poised for significant growth, particularly at the Fox Complex. The development of the Stock mine and the ongoing Pre-Feasibility Study for Grey Fox are expected to enhance production capabilities, with management targeting an increase in annual gold production to 60,000 ounces by 2027 and potentially up to 150,000 ounces by 2030.
Furthermore, McEwen Mining’s recent $110 million convertible debt financing is aimed at supporting these growth plans, indicating a strong commitment to advancing key projects. Although the price target was adjusted down to $15.50 due to revisions in the asset model and increased debt, the valuation of McEwen’s core and non-core assets, along with their cash and inventory balance, supports the Buy rating. The strategic initiatives and expected production growth are anticipated to create long-term value for shareholders.
In another report released today, Roth MKM also maintained a Buy rating on the stock with a $12.00 price target.