The Globe and Mail reports in its Thursday edition that CIBC World Markets analyst Oscar Cabrera upgraded Capstone Mining (99 cents) from "neutral" to "outperformer." The Globe's David Leeder and Roma Luciw write in the Eye On Equities column that Mr. Cabrera increased his share target to $1.30 from 60 cents. At the same time, Mr. Cabrera downgraded Ero Copper ($17.70) from "outperformer" to "neutral" on valuation, increasing the share target to $19 from $17.50. Mr. Cabrera says in a note: "We raised our 2020-21 copper and iron ore forecasts modestly as COVID-19 led supply disruptions resulted in tighter fundamentals. Also, the reopening of G7 economies and proposed stimulus packages by these countries led to an improved market sentiment, resulting in an unexpected 'V-shaped' copper price recovery and an iron price above $100/tonne, from the March, 2020, lows, plus increased risk appetite/share appreciation for mining equities. The latter led to an increase in our P/E and EV/EBITDA target multiples. There is as still high degree of uncertainty with the containment of the COVID-19 pandemic, despite the reopening of the world's largest economies. We continue to assume a full recovery in metal demand in H2/2021."
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