First Quantum Minerals Ltd (FM:TSX) Analysts rate with a Buy, $41

STA Research
by: STA Research
First Quantum Mineral Ltd stock

Based on the First Quantum Minerals Ltd stock forecasts from 15 analysts, the average analyst target price for First Quantum Minerals Ltd is CAD 41.02 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 Bullish, which is based on 6 positive signals and 5 negative signals. At the last closing, First Quantum Minerals Ltd.’s stock price was CAD 31.24. First Quantum Minerals Ltd.’s stock price has changed by 0% over the past week, -9.52% over the past month and -2.31% over the last year.

Just recently, BMO Financial maintained the Hold rating on the stock, and lowered the target to $39 from $41.

Scotiabank Capital maintained the $50 target and Outperform rating on First Quantum.

STA Research maintained the Hold rating, and $25, 12 month target forecast on the stock.

First Quantum Minerals Ltd. and its subsidiaries are in the business of exploring, developing, and producing mineral properties. Its main activities include exploring for copper, nickel, pyrite, gold, silver, and zinc ores, as well as producing acid. Zambia, Panama, Finland, Turkey, Spain, Australia, and Mauritania all have active mines, as well as a development project in Zambia. It’s looking into Argentina’s Taca Taca copper-gold-molybdenum project, as well as Peru’s Haquira copper deposit. First Quantum Ventures Ltd. was the company’s previous name until July 1996, when it changed to First Quantum Minerals Ltd. First Quantum Minerals Ltd. was founded in 1983 and is based in Toronto, Ontario, 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.

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

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

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:

Below median total returns

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

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.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity 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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