The Globe and Mail reports in its Friday edition that Fortuna Silver Mines has taken a hit of late, falling from an intraday high of $7.58 on Feb. 29, 2012, to close Thursday in Toronto at $4.27. The Globe's Darcy Keith writes in the Eye On Equities column that Canaccord Genuity analyst Nicholas Campbell believes the stock is poised to rebound. The analyst notes that Fortuna Silver Mines reported a disappointing fourth quarter, with a loss of one cent per share, partly due to higher costs at its Caylloma project in Peru, increased taxes and foreign exchange charges. The outlook isn't promising, says Mr. Campbell, with cash costs expected to rise significantly because of declining grades at Caylloma. Still, Mr. Campbell suggests the stock has sold off too much on the news given its strong balance sheet and growth profile. Mr. Campbell sees a longer-term buying opportunity. Mr. Campbell trimmed his price target by $2.50 to $7. Mr. Campbell continues to rate the shares "speculative buy."
Canaccord Genuity analyst Steven Butler has cut his price target to $8.25 from $9 on Fortuna Silver in the Eye column on Oct. 18, 2011. The stock could then be had for $5.68. Fortuna stock has a 52-week range of $4.27 to $7.58.
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