tho rated a buy 2016-11-09 07:35 ET - In the News
The Globe and Mail reports in its Wednesday, Nov. 9, edition that Desjardins Securities analyst Michael Parkin says better quarters are to come from Tahoe Resources ($14.44). The Globe's David Leeder writes that Mr. Parkin reiterated his "buy" on Tahoe, while raising his share price target to $22 from $21.50. Analysts on average target the shares at $24.76. Mr. Parkin says in a note: "After following up with management and updating our model for the weaker-than-expected 3Q16 results, we are slightly more positive on Tahoe. We see lower risk of an increase in the Guatemalan tax rate in the near term, based on management comments, and we expect modestly better operating results. ... We still believe Escobal has higher tax risk, but this could be a longer-term issue. We believe Tahoe's significant silver production (37.1 per cent of 2016 revenue) is the main reason why it trades at a significant premium to gold-producing mid-tier peers, as the purest silver producers are generally trading at similar premiums. Further M&A activity that builds out the gold division could put this premium multiple at risk, in our opinion, but management has stated that it has no plans for further deals in the near term."
© 2016 Canjex Publishing Ltd. All rights reserved.