BMO Capital analyst Matt Murphy maintained a Buy rating on IAMGOLD yesterday and set a price target of C$21.00.
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Matt Murphy has given his Buy rating due to a combination of factors including IAMGOLD’s (IMG) improved production figures and strategic financial maneuvers. Despite facing challenges with high unit costs at Cote and Westwood, the company has demonstrated resilience by exceeding production expectations, which suggests a positive operational trajectory. Additionally, IMG’s decision to implement a Normal Course Issuer Bid (NCIB) to repurchase up to 10% of its shares indicates a commitment to enhancing shareholder value.
Moreover, IAMGOLD has shown progress in reducing its debt, which is a positive indicator of financial health. The company’s EBITDA was in line with expectations, and although free cash flow slightly missed projections, the overall financial performance remains robust. With expectations of cost reductions at Cote by 2026 and continued strong cash flows from Essakane and Westwood, Murphy anticipates sequential improvements in operating results, further supporting his Buy rating.
Murphy covers the Basic Materials sector, focusing on stocks such as Barrick Mining, Franco-Nevada, and First Quantum Minerals. According to TipRanks, Murphy has an average return of 30.6% and a 73.49% success rate on recommended stocks.