Raymond James Raymond James’ Brian MacArthur trimmed his Champion Iron Ltd. target to $8 from $8.25 with an “outperform” rating. The average is $7.59.
“We believe Champion offers investors good exposure to premium iron ore through its Bloom Lake asset, which is a long-life, lower-cost asset producing, high-grade iron ore concentrate (66-per-cent Fe) located in Quebec, a lower-risk jurisdiction,” he said. “In addition, we believe Champion has growth through its Bloom Lake Phase 2 expansion project at favourable capital costs, given the previous owners spent significant capital. Given Champion’s exposure to premium iron ore (which we believe should trade at a premium given structural changes in the iron ore industry), high-quality asset, growth potential, and low jurisdictional risk, we rate the shares Outperform.