Analyst Raj Ray of BMO Capital maintained a Hold rating on Lucara Diamond (LUC – Research Report), with a price target of C$0.40.
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Raj Ray’s rating is based on several factors impacting Lucara Diamond’s performance. The company reported lower-than-expected production and earnings for Q1/25, primarily due to adverse weather conditions and geological challenges at its Karowe mine. This has led to a downward revision in their 2025 guidance for production, sales, and revenue, indicating potential challenges in meeting financial targets.
Additionally, Lucara is facing a funding shortfall for its Karowe underground project, as its current working capital is insufficient to cover planned expenditures. Despite Lucara’s reputation for producing high-value diamonds, these financial and operational challenges have prompted Raj Ray to maintain a Hold rating, reflecting a cautious outlook on the company’s ability to navigate these issues effectively.
Based on the recent corporate insider activity of 18 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LUC in relation to earlier this year.