Endeavour Mining: Operational Outperformance, Disciplined Capex, and Strengthening Balance Sheet Support Buy Rating

In a report released today, Ioannis Masvoulas from Morgan Stanley maintained a Buy rating on Endeavour Mining, with a price target of p4,580.00.

Ioannis Masvoulas has given his Buy rating due to a combination of factors that reflect a solid operational and financial outlook for Endeavour Mining. The company’s 2026 production guidance broadly matches both his estimates and market expectations, indicating stability in output, while the all-in sustaining cost guidance, though slightly above consensus, remains within his projected range and suggests manageable cost dynamics at current gold price assumptions. In addition, Endeavour’s planned capital expenditures for 2026 are below his prior forecast on a like-for-like basis, which supports improved free cash flow generation potential relative to his earlier expectations.

Moreover, the latest quarterly results showed stronger-than-expected gold production and sales, with volumes exceeding both his model and consensus, underpinned by better grades at key assets such as Lafigue. Although unit costs came in somewhat higher than the market was looking for, the operational outperformance and the company’s indication of favorable net debt and capital returns metrics for 2025 underpin a supportive balance sheet and shareholder return profile. Taken together, these elements lead Masvoulas to view the shares as attractively positioned, with a modest upside to his thesis over the coming 12 months, justifying his Buy recommendation.

According to TipRanks, Masvoulas is a 4-star analyst with an average return of 6.7% and a 62.25% success rate. Masvoulas covers the Basic Materials sector, focusing on stocks such as Lundin Mining, First Quantum Minerals, and Stora Enso Oyj.

In another report released today, TipRanks – Google also downgraded the stock to a Buy with a C$100.00 price target.