Cormark Securities raised the target on B2 Gold(BTO:CA) to $7

STA Research
by: STA Research

Cormark Securities raised the target on B2 Gold to $7, and maintained the Buy rating on the company’s stock.                                                                                                                                                                                   
STA Research set the target on the stock at $9, with a Buy rating, while Scotiabank Capital maintained the Outperform rating coupled with the $8 target on the company.

Based on the B2Gold Corp stock forecasts from 11 analysts, the average analyst target price for B2Gold Corp is CAD 7.20 over the next 12 months. B2Gold Corp’s average analyst rating is . Stock Target Advisor’s own stock analysis of B2Gold Corp is Very Bullish, which is based on 10 positive signals and 1 negative signals. At the last closing, B2Gold Corp’s stock price was CAD 5.80. B2Gold Corp’s stock price has changed by +0.32% over the past week, +0.49% over the past month and +2.29% 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.

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.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it 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 Earnings Growth

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

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What we don’t like:

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.

 

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