Analyst Tate Sullivan from Maxim Group reiterated a Buy rating on Contango ORE and keeping the price target at $35.00.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Tate Sullivan has given his Buy rating due to a combination of factors, including the increased gold production and higher forward gold prices anticipated for Contango ORE. The company expects significant cash distributions from its joint venture gold mine, exceeding previous estimates, which strengthens its financial outlook.
Additionally, the firm plans to use free cash flow to reduce debt and further develop other gold projects, supported by a recent equity capital raise. Despite a year-over-year decline in production, the actual figures surpassed forecasts, leading to an upward revision in free cash flow projections. The positive momentum in gold prices, driven by global buying trends, also contributes to a favorable long-term outlook for Contango ORE, reinforcing the Buy rating with a price target of $35.
Sullivan covers the Industrials sector, focusing on stocks such as Seanergy Maritime, Cheetah Net Supply Chain Service, Inc. Class A, and BWX Technologies. According to TipRanks, Sullivan has an average return of 3.4% and a 48.39% success rate on recommended stocks.
In another report released on October 1, Roth MKM also maintained a Buy rating on the stock with a $35.00 price target.