Equinox Gold (EQX – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst yesterday. Analyst Kevin O’Halloran from BMO Capital maintained a Buy rating on the stock and has a C$10.00 price target.
Kevin O’Halloran has given his Buy rating due to a combination of factors including Equinox Gold’s better-than-expected earnings and the potential for cost improvements. Despite a lighter first-quarter production, the company surpassed earnings estimates with a smaller adjusted loss per share than anticipated, which was a favorable sign against the backdrop of lower gold production and revenue. Moreover, Equinox’s all-in sustaining costs (AISC) came in below predictions, which, alongside the anticipated production increase in the second half of the year, suggests a stronger financial performance ahead.
Additionally, the strategic move to acquire the remaining 40% of the Greenstone project, thus achieving full ownership, is poised to bolster Equinox’s production profile significantly. This acquisition is expected to contribute to a substantial increase in production in the following year. O’Halloran also notes that Equinox’s stock is trading at a discount to net asset value (NAV) compared to its peers, which provides room for a potential re-rating as the company continues to make progress on its key projects. The combination of these elements underpins O’Halloran’s positive outlook and Buy recommendation for Equinox Gold’s stock.
In another report released on April 29, Canaccord Genuity also maintained a Buy rating on the stock with a C$12.00 price target.
Based on the recent corporate insider activity of 99 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of EQX in relation to earlier this year.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Equinox Gold (EQX) Company Description:
Equinox Gold Corp. engages in the exploration of gold mining properties. It operates mesquite & Arizona gold mine, castle mountain, gold and copper projects. The company was founded by Marc Pais on March 23, 2007 and is headquartered in Vancouver, Canada.
