FYI - if not already posted
Globe says Hassan maintains Alio Gold at "underperform"
2018-03-21 07:59 ET - In the News
The Globe and Mail reports in its Wednesday, March 21, edition that Raymond James analyst Tara Hassan had a negative initial impression of Alio Gold's ($2.68) deal to acquire Rye Patch Gold. The Globe's Tim Shufelt writes in the Eye On Equities column that Ms. Hassan says: "While we welcome the geographical diversification it comes at the cost of substantial share dilution and the addition of debt to the balance sheet. We will evaluate the proposed transaction to determine the impact to our estimates." Ms. Hassan reiterated her "underperform" rating on Alio stock, with an unchanged $7.25 share target. Analysts on average target the shares at $7.98. On Monday, Alio announced an agreement to acquire Rye Patch in an all-equity deal worth about $128-million. The merger would add Rye Patch's Florida Canyon mine in Nevada to Alio's asset base, though the mine underperformed significantly last year. Ms. Hassan says, "There will be questions around asset quality that may present an overhang until more operating data is presented through 2018." The Globe reported on Nov. 22, 2017, that Ms. Hassan had cut her rating for Alio to "underperform" from "outperform." The shares could then be had for $3.99.