Analyst Brian Quast from BMO Capital maintained a Buy rating on Eldorado Gold (EGO – Research Report) and increased the price target to C$23.00 from C$21.00.
Brian Quast has given his Buy rating due to a combination of factors that suggest Eldorado Gold is positioned for a positive future performance. The company’s first-quarter earnings per share were in line with estimates, which, despite a slight miss on production expectations, were counterbalanced by higher gold prices and cost management. Eldorado’s all-in sustaining costs (AISC) were notably below the consensus, indicating a solid financial control that outperformed market expectations. Moreover, the company’s significant cash position at the end of the quarter reflects a strong balance sheet, capable of supporting its operations and growth.
Additionally, Quast’s confidence is bolstered by the progression of the Skouries project, which remains on budget and on track to commence production as planned. This project’s adherence to its timeline and budget is a critical factor, as it is expected to contribute substantially to Eldorado’s growth and potential re-rating in the market. The company’s commitment to maintaining its production guidance for the year further underscores management’s confidence in the company’s operational capabilities. Taking these elements into account, Quast sees Eldorado Gold as an attractive investment opportunity, especially when considering its valuation relative to its peers.
Quast covers the Basic Materials sector, focusing on stocks such as Eldorado Gold, B2Gold, and Alamos Gold. According to TipRanks, Quast has an average return of 6.6% and a 52.29% success rate on recommended stocks.
In another report released on April 19, National Bank also maintained a Buy rating on the stock with a C$25.00 price target.
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Eldorado Gold (EGO) Company Description:
Eldorado Gold Corp. engages in the mining, development and exploration of gold. It has mining operations, ongoing development projects and exploration in Turkey, Canada, Greece, Brazil, Romania and Serbia. The company was founded by Richard J. Barclay, Marco Antonio Romero, and Gary D. Nordin on April 2, 1992 and is headquartered in Vancouver, Canada.
