Analyst Tate Sullivan of Maxim Group maintained a Buy rating on Caledonia Mining (CMCL – Research Report), retaining the price target of $18.00.
Tate Sullivan has given his Buy rating due to a combination of factors that highlight Caledonia Mining’s strong performance and potential for growth. The company’s gold production in the first quarter of 2025 exceeded expectations, showing a 9.5% increase compared to the previous year, which was above the forecasted figures. This positive production trend, coupled with the management’s raised guidance for the year, suggests a robust operational outlook.
Additionally, the rise in gold prices to record highs has positively impacted Caledonia’s revenue and EBITDA forecasts. The company is expected to use its free cash flow to reduce debt and maintain dividends, further strengthening its financial position. Trading at a relatively low multiple of the 2025 EBITDA forecast, the stock presents an attractive investment opportunity, justifying the Buy rating and the $18 price target set by Sullivan.
CMCL’s price has also changed moderately for the past six months – from $16.650 to $14.220, which is a -14.59% drop .