RE: Canaccord note on ELDThis says all: "Eldorado could become the go-to stock in the mid-tier space given the operating margins and growth of 70%
over four years, and would become an attractive takeover candidate."
$9.00 target is a little conservative imo. GMP securities gave a BUY and $8.50 target in Feb. before the mine reopened.
Eldorado Gold "buy," target price raised
02/26/08 - GMP Securities
NEW YORK, February 26 (newratings.com) - Analysts at GMP Securities maintain their "buy" rating on Eldorado Gold Corp (EGO), while reducing their estimates for the company. The target price has been raised from C$8.25 to C$8.50.
In a research note published this morning, the analysts mention that the company has released its year-end reserves report, indicating 13% growth in P&P reserves and M&I resources, driven by a successful exploration campaign in 2007. Operations at Kisladag are likely to re-commence in the near term, the analysts say. Eldorado Gold’s prospects, after the recommencement of operations at Kisladag, appear to be bright on account of the company's solid cash generation potential, quality of assets and unhedged gold exposure, GMP Securities adds. The EPS estimate for 2008 has been reduced from C$0.33 to C$0.31.