Post by
Ridgeback on Oct 16, 2024 8:48am
Hudbay is the most torqued name to gold
The Globe and Mail reports in its Wednesday edition that National Bank Financial analysts Shane Nagle and Ravi Nizami anticipate a decrease in copper prices, which is expected to result in a softer earnings before interest, taxes, depreciation and amortization outlook for base metals companies in the third quarter.
The Globe's David Leeder writes in the Eye On Equities column that Mr. Nagle and Mr. Nizami also predict a decline in the Street's estimates as earnings season approaches. National Bank continues rank Hudbay Minerals "outperform." The analysts boosted their share target by $1.25 to $15.94.
Analysts on average target the shares at $15.94. Mr. Nagle says in a note: "While our current Q3 estimate is below consensus, management has been forthcoming with processing a higher proportion of stockpiles at Constancia in Q3 and elevated grades in Q4.
Hudbay is also the most torqued name to gold prices and when combined with improving gold grades at Lalor, we see one of the most significant jumps in EBITDA into Q4 in our coverage to $344-million (U.S.) (up 106 per cent)." The Globe reported on May 16 that National Bank had upgraded Hudbay to "outperform" from "sector perform." The shares could then be had for $13.53.