Analysts rate First Quantum Minerals Ltd (FM:CA:TSX) with a Buy, $40 Target

STA Research
by: STA Research
First Quantum Mineral Ltd stock

Analysts rate First quantum Minerals with a consensus Buy rating and a 12-month average Target price of S40 per share.

Deutsche Bank Capital rates First Quantum Minerals with a  Buy rating, the target was maintained at $40.

Based on the First Quantum Minerals Ltd stock forecasts from 17 analysts, the average analyst target price for First Quantum Minerals Ltd is CAD 35.74 over the next 12 months. First Quantum Minerals Ltd.’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of First Quantum Minerals Ltd is Slightly Bearish, which is based on 5 positive signals and 9 negative signals. First Quantum Minerals Ltd.’s stock price at the last closing was CAD 39.05. First Quantum Minerals Ltd.’s stock price has changed by +2.33% over the past week, +3.00% over the past month and +46.36% over the last year.

First Quantum Minerals Ltd. engages in the exploration, development, and production of mineral properties. It primarily explores copper, nickel, pyrite, gold, silver, and zinc ores, as well as produces acid. The company was formerly known as First Quantum Ventures Ltd. and changed its name to First Quantum Minerals Ltd. in July 1996. First Quantum Minerals Ltd. was incorporated in 1983 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.

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.

Superior Earnings Growth

Compared to its sector, this stock has shown top quartile earnings growth in the previous 5 years.

Superior Revenue Growth

Compared to its sector, this stock has shown top quartile revenue growth in the previous 5 years.

 

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns

The company has underperformed its peers on annual average total returns in the past 5 years.

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 peers’ 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.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

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.

 

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