OTCPK:PALDF - Post Discussion
Post by
crow27 on Oct 03, 2019 2:45pm
Same Update , Starting To Get Out
Globe says North American Palladium rated "outperform"
2019-10-02 07:12 ET - In the News
The Globe and Mail reports in its Wednesday, Oct. 2, edition that RBC analyst Mark Mihaljevic began coverage of North American Palladium ($17.42) with an "outperform" rating, seeing its free cash flow, returns and margins "well ahead of peers." The Globe's David Leeder writes that Mr. Mihaljevic set a share target of $26, which exceeds the current consensus of $22.43. Mr. Mihaljevic says in a note: "At our forecast prices, this equates to an average free cash flow yield of 19 per cent from 2019-21E which is the highest in our North American precious metals coverage universe. This compares to the single asset peers at 14 per cent and the broader universe at 9 per cent. The company's strong outlook also sees NAP deliver one of the highest return on invested capital in the precious metals space at 24 per cent, based on our estimates. This is well ahead of the single-asset producer average of 6 per cent and broader sector average of 6 per cent. We also see a similar trend with return of equity with the company's ROE of 25 per cent comparing favorably to the single-asset peers at 9 per cent and sector at 7 per cent. Longer term, we are currently more cautious as we forecast an eventual re-balancing of the market."
I sure like the high-lited part. One step at a time folks.
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