CIBC Maintains Sector Outperformer, target $8
CIBC World Markets Inc. maintained its "Sector Outperformer" rating on Lundin Mining Corp. (TSX:LUN.TO) with a price target of $8.00.
"While market sentiment on Lundin remains weak on the back of weaker-than-expected Q3/11 results and somewhat muted near-term growth, we believe the shares provide compelling value," CIBC analyst Alec Kodatsky wrote in a note.
Lundin provided a 2012-14 production outlook with 2012 attributable copper production consistent with previous guidance, while 2013-14 copper production is expected to increase by 25% from 2012 levels.
The outlook for nickel, zinc, and lead are largely in line with his expectations, Kodatsky said.
"Overall, the guidance is consistent with prior management comments and our expectations. We are still awaiting plans in Q1/12 on how Lombador/Semblana will integrate into operations at Neves, which could further increase copper production and is likely the next significant catalyst," Kodatsky said.
On Tuesday, shares of LUN.TO are trading 2.57% lower at $3.79 on the Toronto Stock Exchange. The stock has been trading in the 52-week range between $3.17 and $9.31.
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