Raymond James increases targetto $1.60
Bullish on base metal prices
Leonard Zehr, 06/07/07 at 2:06 PM EDT
Raymond James has tweaked its short-term forecasts for base metals prices but raised the long-term view by about 25 per cent to back up its bullish outlook.
“We subscribe to the idea that we are now on the other side of a steep change in capital and operating cost inflation, and believe it is appropriate to use a much more realistic price outlook, hence the need for changes at this time,” writes analyst Tom Meyer, adding that his metal price and operating cost assumptions are “realistic, but conservative.”
Running through the sector, he suggests that First Quantum Minerals Ltd., Equinox Minerals Ltd., Chariot Resources Ltd., and Frontera Copper Corp. be core holdings in a diversified portfolio.
Elsewhere, he raised the target price on Quadra Mining Ltd. to $25 from $17; First Quantum, to $150 from $105; Equinox, to $5 from $4; Chariot, to $1.60 from $1.30 and Inmet Mining Corp. to $115 from $85.
He also upgraded International Royalty Corp. to “strong buy” from “outperform” and New Gold Inc. to “market perform” from “underperform,” with the price target down to $7.50 from $8.