NYSEAM:LSG - Post Discussion
Post by
Marine2 on Apr 06, 2016 9:44am
Globe says Lesiak rates Tahoe Resources "buy"
Globe says Lesiak rates Tahoe Resources "buy"
2016-04-06 06:58 ET - In the News
See In the News (C-THO) Tahoe Resources Inc
The Globe and Mail reports in its Wednesday, April 6, edition that Canaccord Genuity analyst Tony Lesiak says the price paid for Lake Shore Gold by Tahoe Resources is "fair but long on optionality." The Globe's David Leeder writes in the Eye On Equities column that on Friday, the companies announced the completion of the deal after Tahoe shareholders gave the nod. Based on the agreement, Lake Shore shareholders receive 0.1467 common share of Tahoe for each outstanding share. Lake Shore is now a subsidiary of Tahoe. Mr. Lesiak says: "Overall, we view the transaction as neutral on a NAVPS [net asset value per share] basis and positive on earnings (16 per cent) and cash flows (4 per cent). The key benefit is that the deal further diversifies Tahoe's perceived geopolitical risk and moreover provides for significant optimization and exploration potential, which may be detailed in the coming months." Mr. Lesiak believes Tahoe "should trade at a premium valuation multiple to its peer." He rates Tahoe "buy." Mr. Lesiak raised his target price to $18 from $15. Analysts on average target the shares at $17.29. CIBC rated Tahoe "outperformer" in the Eye column on Oct. 9, 2015. The shares were then worth $12.48.
M2
PS One might take a look at ICG after LSG ?
Good luck with finding another replacement for LSG !
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