Agnico Eagle Mines Limited (AEM:CA:TSX) Analysts rate with a Strong Buy, $86

STA Research
by: STA Research
Agnico Eagle Mines stock

Based on the Agnico Eagle Mines Limited stock forecasts from 10 analysts, the average analyst target price for Agnico Eagle Mines Limited is CAD 86.29 over the next 12 months. Agnico Eagle Mines Limited’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Agnico Eagle Mines Limited is Slightly Bearish, which is based on 4 positive signals and 8 negative signals. At the last closing, Agnico Eagle Mines Limited’s stock price was CAD 77.65. Agnico Eagle Mines Limited’s stock price has changed by -5.36% over the past week, -0.98% over the past month and -6.12% over the last year.

Barclays Capital raised the target on the stock to $71 from $66, and maintained the Overweight rating on the stock.

Agnico Eagle Mines Limited engages in the exploration, development, and production of mineral properties in Canada, Mexico, and Finland. It operates through Northern Business and Southern Business segments. The company primarily produces and sells gold deposits, as well as explores for silver, zinc, and copper deposits. The company was incorporated in 1953 and is headquartered in Toronto, Canada.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and are in the top quartile. Although stability is good, also keep in mind it can limit returns.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

 

What we don’t like:

Poor risk-adjusted returns

This company is delivering below median risk adjusted returns to its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peer’s median on a price to book value basis.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Highly leveraged

Compared to its sector peers on debt to equity, the company is in the bottom half and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on a free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector.

 

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