In a report released today, Andrew Breichmanas from Stifel Nicolaus maintained a Buy rating on Capital Drilling (CAPD – Research Report), with a price target of p95.00.
Andrew Breichmanas has given his Buy rating due to a combination of factors that highlight Capital Drilling’s strategic positioning and growth potential. The company has successfully secured a significant mining services contract at the Reko Diq copper-gold project in Pakistan, which is operated by Barrick. This contract is expected to generate substantial annual revenue and extends through December 2028, with a potential five-year extension, showcasing Capital’s ability to secure long-term commitments.
Additionally, the contract allows Capital to effectively utilize its idle mining fleet, redeploying equipment from previous projects to the Reko Diq site. This strategic move not only optimizes resource usage but also positions Capital at the forefront of a world-class mining project from its development phase. The Reko Diq project, with its extensive mine life and significant production capacity, aligns well with Capital’s strategy of forming long-term partnerships with major industry players, further justifying the Buy rating.
According to TipRanks, Breichmanas is a 4-star analyst with an average return of 8.5% and a 54.61% success rate.