Jan 30 (Reuters) - Dundee Capital Markets started coverage of Yamana Gold Inc (YRI.TO: Quote, Profile, Research) with a "buy" rating and a price target of C$13.00, and said the Canadian exploration and production company is under-valued in comparison with its peers, offering investors a good entry point.
"Yamana offers a combination of superior growth in production, improving leverage to the gold price and excellent liquidity to the gold investor," the brokerage said.
Dundee Capital, which expects Yamana's commercial gold equivalent ounce (GEO) to grow by 36 percent to 1.35 M oz GEO in 2009, said the company's exposure to copper will decline from 36 percent in 2008 to 19 percent in 2009.
The brokerage added it remains concerned about the commissioning risk at Yamana's Sao Vincente site in Brazil and Gualcamayo in Argentina.
Shares of the company were trading up 26 Canadian cents at C$10.09 in morning trade on the Toronto Stock Exchange. (Reporting by Richa Dubey in Bangalore; Editing by Pratish Narayanan)