Canaccord Genuity Maintains Speculative Buy On Rubicon Minerals, Raises PT To C$1.80

In a research note issued this morning, Canaccord analyst Joe Mazumdar reiterated a “Speculative Buy” rating on Rubicon Minerals Corp. (RBY) and increased his price target to C$1.80 (from C$1.60).

Mazumdar comments: “We increased (C$0.20, 12.5%) our one-year, risk-adjusted target price to C$1.80 per share, which represents a ~18% potential return to current price levels. It is based on our forecast assumptions for the company’s wholly owned Phoenix gold project, specifically the underground F2 Gold System in the prolific Red Lake Greenstone Belt of NW Ontario, Canada. We increased our P/NPV multiple to 1.0x (0.9x previous) to the NPV@7% (~C$753 M) to account for the positive development update and the benefit of infill drilling providing a rolling 3-year M&I resource for the mine plan. Note that our NPV calculation begins at the start of 2016 with all the development capital already spent”.

According to TipRanks, which measures analysts and bloggers success rate based on how their calls perform, analyst Joe Mazumdar currently has a one-year average return of 7.8% and a 75% success rate. He is ranked #1863 out of 3118 analysts.

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