H.C. Wainwright analyst Heiko Ihle reiterated a Buy rating on Drdgold (DRD – Research Report) yesterday and set a price target of $16.25.
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Heiko Ihle has given his Buy rating due to a combination of factors influencing DRDGOLD’s performance. The company reported a significant 28% increase in revenue, largely driven by a 26% rise in the average gold price denominated in Rand. This led to a substantial 74% year-over-year increase in operating profit, showcasing strong financial performance.
Additionally, DRDGOLD has demonstrated operational efficiency by commissioning a solar plant and battery storage system, which is expected to reduce costs and energy risks. The company also showed commitment to its growth strategies with ongoing upgrades at its Far West Gold Recoveries site and the Ergo plant. With a solid cash position and no debt, DRDGOLD’s prospects appear promising, further supported by consistent dividend payments over 18 years and continued benefits from elevated gold prices.
Ihle covers the Basic Materials sector, focusing on stocks such as Endeavour Silver, US Gold, and Drdgold. According to TipRanks, Ihle has an average return of 6.7% and a 47.38% success rate on recommended stocks.