Analysts rate Turquoise Hill Resources Ltd. (TRQ:TSX) with a Buy rating and a CAD 37 target

STA Research
by: STA Research
Turquoise Hill Resources Ltd.

Analysts rate Turquoise Hill Resources Ltd. (TRQ:TSX) with a consensus Buy rating and an average TRQ stock price target of CAD 37.32 per share over the next 12 months.

TD Research recently maintained the Hold rating for Turquoise Hill Resources stock with a  12 month target price of $34.

Based on the Turquoise Hill Resources Ltd.  stock forecasts from 7 analysts, the average analyst TRQ stock price target is CAD 37.32 over the next 12 months. Turquoise Hill Resources Ltd.’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of Turquoise Hill Resources stock forecast is Bearish, which is based on 4 positive signals and 12 negative signals. At the last closing, Turquoise Hill Resources stock price was CAD 37.44Turquoise Hill Resources stock price has changed by +6.48% over the past week, +5.59% over the past month and +104.70% over the last year.

About Turquoise Hill Resources Ltd. (TRQ:TSX):

Turquoise Hill Resources Ltd., together with its subsidiaries, operates as a mining company. The company primarily explores for copper, gold, and silver deposits. It engages in the operation and development of the Oyu Tolgoi copper-gold mine located in Southern Mongolia. The company was formerly known as Ivanhoe Mines Ltd. and changed its name to Turquoise Hill Resources Ltd. in August 2012. Turquoise Hill Resources Ltd. was incorporated in 1994 and is headquartered in Montreal, Canada. Turquoise Hill Resources Ltd. operates as a subsidiary of Rio Tinto Group.

What we like:

High market capitalization

Turquoise Hill Resources stock is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Underpriced compared to book value

TRQ stock price is trading low compared to its peers on a price to book value 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.

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.

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.

High volatility

The total returns for TRQ stock 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 dividend returns

The average income yield of TRQ stock 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

TRQ stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced on cashflow basis

TRQ stock price 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.

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 capital utilization

The company management has delivered below median return on invested capital 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

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the TRQ stock forecast and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

TRQ stock price 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 to buy.

Low Earnings Growth

TRQ stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth

TRQ stock has shown below median revenue growth in the previous 5 years compared to its sector

Disclaimer

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