Advancing from Developer to Emerging Producer: Valuation Upside and Lowering Risk Support Buy Rating on Montage

BMO Capital analyst Raj Ray maintained a Buy rating on Montage Gold Corp. yesterday and set a price target of C$20.00.

Raj Ray has given his Buy rating due to a combination of factors that underscore both valuation upside and improving risk profile as Montage advances toward production. He highlights that the company is transitioning from a development story to an emerging producer, with first gold now expected by Q4 2026, which he believes will naturally reduce perceived risk each quarter and attract more cash-flow-focused investors. Despite the stock’s strong performance over the past year, his analysis of 2027 free cash flow relative to enterprise value indicates the shares still trade at a substantial discount to peers, supporting meaningful re-rating potential as execution continues.

In addition, Raj points to solid project execution, with construction progressing on budget and a large portion of initial capital already committed, as well as mine plan enhancements that bring production forward and ease funding pressure. Ongoing exploration success supports the ability to sustain production levels beyond the initial years, reinforcing the long-term asset quality. He also notes that Montage’s broader exploration portfolio and planned acquisition of African Gold in West Africa add diversification and optionality, providing further avenues for value creation. Taken together, these elements justify his increased target price and support maintaining a positive recommendation on the shares.

Ray covers the Basic Materials sector, focusing on stocks such as Gold Fields, Harmony Gold Mining, and Novagold Resources New. According to TipRanks, Ray has an average return of 38.5% and a 73.08% success rate on recommended stocks.

In another report released on January 26, Scotiabank also maintained a Buy rating on the stock with a C$15.00 price target.