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Roth Capital Maintains Buy On Paramount Gold And Silver Following Takeout Deal


In a research report released today, Roth Capital analyst Joe Reagor maintained a Buy rating on Paramount Gold And Silver (NYSE:PZG) with a price target of $1.00, following the news that the company has reached an agreement to be acquired by Coeur Mining (NYSE:CDE) for a value of $146 million plus a 95.1% interest in a spin-out.

Reagor noted, “We previously believed PZG was an ideal takeout candidate and CDE was always the most logical buyer, in our view. Thus, we view this transaction as essentially in-line with our expectations.the spin-out. We previously believed PZG was an ideal takeout candidate and CDE was always the most logical buyer, in our view. Thus, we view this transaction as essentially in-line with our expectations.”

The analyst added, “We value the CDE shares at market or $0.87 per share based on CDE’s December 17, 2014 closing price and the spin-out at $37 million or $0.23 per share for a total value of $1.10 per share. Thus, we see no reason to lower our price target to the current market value of $0.83 per share and we are maintaining our Buy rating.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Joe Reagor has a total average return of -11.9% and a 22.6% success rate. Reagor has a -6.4% average return when recommending PZG, and is ranked #3356 out of 3417 analysts.

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