The Globe and Mail reports in its Friday, May 21, edition that Desjardins Securities analyst John Sclodnick commenced coverage on Argonaut Gold ($3.18) with a "buy" recommendation and share target of $4.25. The Globe's David Leeder writes in the Eye On Equities column that Mr. Sclodnick calls Argonaut Gold his top producer pick, citing its an continuing transformation. Analysts on average target the shares at $4.97.
Mr. Sclodnick says in a note: "Using cash flows from its assets in Mexico to help fund development of the Magino project in Ontario, the company will go from being a Mexican heap leacher with a high cost base to emerge as a lower-cost, more diversified producer with a long-life asset in a stable jurisdiction. While there are certainly risks along the way, we believe that patient investors should be rewarded with a significant valuation re-rating; or, if it does not re-rate, then we see the company as a compelling takeout candidate." The Globe reported on Nov. 11 that Paradigm Capital began coverage on Argonaut with a "buy" rating. It was then worth $2.41. The Globe reported on Jan. 15 that Echelon Capital Markets was maintaining its "buy" call on Argonaut when it could be had for $2.51.
© 2021 Canjex Publishing Ltd. All rights reserved.