Wesdome Gold Mines, the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst Ralph M. Profiti from Stifel Nicolaus maintained a Hold rating on the stock and has a C$20.50 price target.
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Ralph M. Profiti has given his Hold rating due to a combination of factors influencing Wesdome Gold Mines’ performance. The company’s Q2/25 results showed adjusted EPS and EBITDA that were slightly above expectations, but the overall FY25 guidance was seen as net-negative. While there was a slight increase in Eagle River’s gold production, this was more than offset by a significant reduction in Kiena’s production expectations, coupled with higher cash costs and AISC.
Additionally, the revised guidance led to a decrease in the FY25 EBITDA and free cash flow estimates, prompting a reevaluation of the stock’s potential. Despite the company’s strong liquidity position and debt-free status, the increased costs and production challenges at Kiena, along with the need for higher capital expenditures, have tempered expectations. Consequently, Wesdome Gold Mines now trades in line with its mid-tier gold producer peers, justifying the Hold rating.
According to TipRanks, M. Profiti is a 4-star analyst with an average return of 7.0% and a 52.34% success rate. M. Profiti covers the Basic Materials sector, focusing on stocks such as K92 Mining, Freeport-McMoRan, and Hudbay Minerals.