Globe says Alamos seen deserving of "premium valuation"
2023-04-25 07:32 ET - In the News
The Globe and Mail reports in its Tuesday, April 25, edition that Scotia Capital analyst Ovais Habib has resumed coverage on Alamos Gold with a "sector outperform" recommendation and $14.50 share target (all figures U.S.). The Globe's David Leeder writes in the Eye On Equities column that analysts on average target the shares at $11.87. Mr. Habib says in a note, "Our 'sector outperform' rating for Alamos Gold shares is based on our view that it should trade at a premium as it offers better risk–reward proposition given its demonstrated operation track record, steady production (average 16-year mine life), high quality assets with 83-per-cent NAV exposure in a tier 1 jurisdiction -- Canada, declining cost profile, growing FCF profile and its fully-funded as well as higher-margin production growth." The Globe reported on Dec. 1 that National Bank Financial analyst Michael Parkin continued to rate Alamos "outperform." Mr. Parkin said Alamos was one of his top picks. The shares could then be had for about $10. The Globe reported on Jan. 20 that Canaccord Genuity analyst Dalton Baretto had downgraded Alamos Gold to "hold" from "buy" based on valuation. The shares could then be had for $11.50.