The Globe and Mail reports in its Saturday edition that Canaccord Genuity analyst Dalton Baretto feels Capstone Mining ($1.61)) is "fully valued for now." The Globe's David Leeder writes in the Eye On Equities column that
Mr. Baretto lowered his rating for the stock to "hold" from "buy" based on valuation considerations, however he notes "weakness could create opportunities."
On Wednesday, Vancouver-based Capstone reported fourth quarter 2016 adjusted earnings per share of eight cents, topping Mr. Baretto's projection of five cents and the three-cent consensus. He cited lower-than-anticipated depreciation and taxes for the beat.
Earnings before interest, taxes, depreciation and amortization of $72-million were in line with his $73-million estimate. Mr. Baretto raised his target for the stock to $1.70 from $1.60. Analysts on average target the shares at $1.67. Dundee Securities analyst Joseph Gallucci boosted Capstone to "buy" from "neutral" in the Eye column on April 8, 2016. He targeted the shares at 80 cents. The shares could then be had for 44.5 cents. BMO Nesbitt Burns analyst Alex Terentiew rated Capstone "outperform" in the Eye column on Feb. 3, 2017. The shares could then be had for $1.50.
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