Upgrade Raymond James analyst Brian MacArthur raised his target for shares of Champion Iron Ltd.) to $7.75 from $7.25 with an “outperform” rating. The average is $7.80.
“We believe Champion offers investors good exposure to premium iron ore through its Bloom Lake asset, which is a long-life, lower-cost asset producing high-grade iron ore concentrate (~66% Fe) located in Quebec, Canada, a lower-risk jurisdiction,” he said. “In addition, we believe Champion
has potential for growth through its Bloom Lake Phase 2 expansion project at favourable capital costs, given the previous owners spent significant capital. Given Champion’s exposure to premium iron ore (which we believe should trade at a premium given structural changes in the iron ore industry), high-quality asset, growth potential, and low jurisdictional risk, we rate the shares Outperform.”