Analysts rate Lundin Mining Corp.( LUN:TSX) with a Buy, $13 Target

STA Research
by: STA Research

Analysts rate Lundin Mining Corporation stock with a consensus Buy rating and a 12-month average target price of $12.84 per share.

Scotiabank Capital maintains Lundin Mining Corp with a Sector Perform rating and lowers the target price to $13 from $13.50.

Canaccord Capital upgrades Lundin Mining Corp. with a Buy rating and raises the target price to $14 from $11 on the company’s stock.

Based on the Lundin Mining Corporation stock forecasts from 18 analysts, the average analyst target price for Lundin Mining Corporation is CAD 12.84 over the next 12 months. Lundin Mining Corporation’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Lundin Mining Corporation is Bullish , which is based on 8 positive signals and 3 negative signals. At the last closing, Lundin Mining Corporation’s stock price was CAD 11.88Lundin Mining Corporation’s stock price has changed by -13.35% over the past week, -8.40% over the past month and -24.28% over the last year.

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 is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

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.

Underpriced on free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior Revenue Growth

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

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in 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 on cashflow 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 to buy.

 

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