Hecla Mining Company (HL – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst Kevin O’Halloran from BMO Capital downgraded the rating on the stock to a Hold and gave it a $5.50 price target.
Kevin O’Halloran has given his Hold rating due to a combination of factors impacting Hecla Mining Company. The company’s first-quarter earnings per share fell short of expectations, with higher costs affecting profitability despite a slight increase in silver production. Additionally, the free cash flow was negative, influenced by changes in working capital, which further pressured the financial outlook.
Another significant factor in the Hold rating is the uncertainty surrounding the Keno Hill project. The ramp-up at Keno Hill has been slower than anticipated, and reaching full production capacity requires further permitting and substantial capital investment. This uncertainty, along with increased cost of sales guidance at other operations like Lucky Friday and Casa Berardi, has led to a reduction in the target price for Hecla’s stock. As a result, the combination of these operational and financial challenges has led to a more cautious outlook on the company’s shares.
O’Halloran covers the Basic Materials sector, focusing on stocks such as Torex Gold Resources, Endeavour Silver, and Fortuna Silver Mines. According to TipRanks, O’Halloran has an average return of 34.3% and an 80.81% success rate on recommended stocks.
In another report released today, CIBC also maintained a Hold rating on the stock with a $7.50 price target.