Matt Murphy, an analyst from BMO Capital, has initiated a new Buy rating on First Quantum Minerals (FQVLF).
Matt Murphy’s rating is based on a combination of factors that highlight First Quantum Minerals’ potential for growth and risk mitigation. The company is expected to benefit significantly if the Cobre Panama mine returns to production, which Murphy estimates has a 70% chance of happening by 2027. This potential reopening is seen as a major value driver, as the market currently undervalues the mine’s contribution to the company’s stock price.
Additionally, First Quantum Minerals is expanding its operations in Zambia, with the Kansanshi S3 project expected to boost production in the coming years. The company is also actively working to reduce its balance sheet risk through potential asset sales and other financial strategies. These efforts, combined with the company’s strong track record in mine development, position it well for long-term growth, including projects like Taca Taca and La Granja. Murphy’s 12-month price target reflects these positive outlooks, supporting his Buy rating.
In another report released today, Canaccord Genuity also upgraded the stock to a Buy with a C$23.00 price target.
Based on the recent corporate insider activity of 36 insiders, corporate insider sentiment is neutral on the stock.