RE:TD Securities Research Report - ALO - May 2019Thanks, LAMResearch. Nice to see something positive and hopeful for a change:
TD Investment Conclusion
We are maintaining our BUY recommendation and our target price of C$2.50. Alio is currently trading more as a developer than as a producer, which is appropriate. With the stock trading at 0.34x NAV, we continue to believe that there is value here to be surfaced in a better junior/developer market.
Valuation
Alio is currently trading at 0.34x NAV and 3.5x 2020E EBITDA, well below the junior/mid-cap producer group average of 0.82x NAV and 4.4x 2020E EBITDA. With the addition of the Florida Canyon mine through the Rye Patch acquisition, we believe that the stock should trade closer to the average valuation of its peer group.
12-Month Target Price: C$2.50
12-Month Total Return: 204.9%"