Analyst Ben Pirie of Atrium Research maintained a Buy rating on Andean Precious Metals, retaining the price target of C$11.00.
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Ben Pirie has given his Buy rating due to a combination of factors that highlight Andean Precious Metals’ strong financial performance. The company reported a significant increase in revenue, reaching $90.4 million, which surpassed the firm’s estimates and marked a 32% year-over-year growth. This was accompanied by a robust operating cash flow of $35.4 million, exceeding expectations and reflecting a 75% increase compared to the previous year.
Furthermore, the company’s gross margin improved to 41%, outperforming the anticipated 38%, and its adjusted EBITDA showed an impressive 84% year-over-year growth. With a net income of $43.7 million, Andean Precious Metals demonstrated strong profitability, which supports the positive outlook. The company’s solid cash position, ending the quarter with $70.8 million in net cash, also contributes to its favorable financial standing, justifying the Buy rating and the target price of C$11.00 per share.