Equinox Gold Corp. (EQX:CA) (EQX)
National Bank reduced its 12-month price target on Equinox Gold to $26.00 per share from $28.00, while maintaining an “Outperform” rating, reflecting a more conservative near-term gold price assumption embedded in its valuation model. The adjustment reflects broader macroeconomic considerations, namely tempered expectations for bullion prices rather than any deterioration in Equinox’s operational performance or asset quality.
The bank continues to view Equinox Gold as fundamentally well positioned, supported by its diversified portfolio of producing mines across multiple jurisdictions and an improving cost profile as recent investments and operational efficiencies take hold. Analysts highlight the company’s meaningful leverage to gold prices, which could translate into outsized earnings and cash flow upside should the gold price environment strengthen over the medium to long term.
Despite the lower target, the maintained “Outperform” rating underscores confidence in management’s execution capabilities, including disciplined capital allocation, optimization of existing operations, and advancement of key development projects. National Bank believes these factors should enable Equinox to generate growing free cash flow and enhance shareholder value, even under a less aggressive gold price outlook in the near term.
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