Analysts rates Ivanhoe Mines Ltd (IVN:CA:TSX) with a Buy, $13 Target

STA Research
by: STA Research
Ivanhoe Mines Ltd stock

Analysts rate Ivanhoe Mines Ltd. with a consensus Strong Buy rating and a target price of $13.07 per share.

Citigroup upgraded Ivanhoe Mines to Buy rating, and raised the target price from $9 to $15. 

Based on the Ivanhoe Mines Ltd stock forecasts from 8 analysts, the average analyst target price for Ivanhoe Mines Ltd is CAD 13.07 over the next 12 months. Ivanhoe Mines Ltd.’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Ivanhoe Mines Ltd is Slightly Bullish, which is based on 6 positive signals and 5 negative signals. At the last closing, Ivanhoe Mines Ltd.’s stock price was CAD 10.35. Ivanhoe Mines Ltd.’s stock price has changed by -0.70% over the past week, -0.92% over the past month and +49.14% over the last year.

Ivanhoe Mines Ltd. engages in the exploration, development, and recovery of minerals and precious metals located primarily in Africa. It explores for platinum, palladium, nickel, copper, gold, rhodium, zinc, silver, germanium, and lead deposits. The company was formerly known as Ivanplats Limited and changed its name to Ivanhoe Mines Ltd. in August 2013. Ivanhoe Mines Ltd. was incorporated in 1993 and is headquartered in Vancouver, 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.

Superior risk-adjusted returns

This stock has performed well, on a risk-adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

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.

What we don’t like:

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.

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.

Negative cash flow

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

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.

 

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