Analyst Kevin O’Halloran of BMO Capital reiterated a Buy rating on Equinox Gold, boosting the price target to C$13.00.
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Kevin O’Halloran has given his Buy rating due to a combination of factors including Equinox Gold’s strong financial performance in the second quarter, where the company exceeded expectations with an adjusted EPS of $0.11 compared to the consensus of $0.03. This outperformance was largely driven by lower than anticipated production costs, which facilitated higher cash flow than estimated. Additionally, operational improvements at the Greenstone project and the upcoming production at the Valentine project are expected to significantly boost cash flows in the latter half of 2025 and into 2026, enhancing the company’s balance sheet and potentially increasing its valuation.
Furthermore, Equinox Gold’s strategic moves, such as the divestment of Nevada assets and the expansion of its revolver, are expected to improve its financial position. The company’s shares are currently trading at a discount, and with the ramp-up of production at key projects, there is an expectation of a re-rating to higher valuation multiples. Equinox’s diverse portfolio of operating mines in the Americas also presents opportunities for further growth and expansion, supporting the positive outlook and Buy rating.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a C$10.50 price target.