Alkane Resources Ltd, the Basic Materials sector company, was revisited by a Wall Street analyst on August 22. Analyst Brian Quast from BMO Capital maintained a Buy rating on the stock and has a C$1.25 price target.
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Brian Quast has given his Buy rating due to a combination of factors that highlight Alkane Resources Ltd’s potential for growth and strategic financial management. Despite the company’s H2/FY25 NPAT falling short of expectations, Quast emphasizes the importance of Alkane’s capital allocation strategy and growth prospects following the merger with MND. This strategic focus is expected to be detailed further in the upcoming FY26 guidance, which will include insights into Costerfield and Bjorkdal operations.
Additionally, Alkane’s cash flow generation is anticipated to strengthen in FY26, supported by increased production and a favorable metal price environment. The company’s improved cash position, bolstered by the merger, allows for greater flexibility in pursuing growth opportunities, both organically and through acquisitions. These factors, along with the expected release of the consolidated FY26 guidance and resources statement, contribute to Quast’s positive outlook on Alkane Resources Ltd’s stock.
According to TipRanks, Quast is a 5-star analyst with an average return of 17.0% and a 60.26% success rate. Quast covers the Basic Materials sector, focusing on stocks such as B2Gold, Northern Star Resources Ltd, and New Gold.
In another report released today, Ord Minnett also upgraded the stock to a Buy with a A$1.00 price target.