Analyst Ben Pirie of Atrium Research maintained a Buy rating on Amerigo Resources, with a price target of C$8.50.
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Ben Pirie has given his Buy rating due to a combination of factors including Amerigo’s substantial earnings leverage to copper prices and its strong first‑quarter performance. A relatively modest year‑over‑year increase in copper prices translated into more than a doubling of EBITDA, with margins reaching around half of revenue, underscoring a highly cash‑generative business model.
Amerigo also produced solid free cash flow, ended the quarter with a sizeable cash balance and no debt, and returned significant capital to shareholders through dividends and buybacks. With management emphasizing strong production, lower unit costs, and favourable copper market dynamics, Pirie believes the company is well positioned to continue generating robust cash flows, supporting his Buy rating and unchanged target price.
According to TipRanks, Pirie is ranked #55 out of 12163 analysts.