H.C. Wainwright analyst Heiko Ihle reiterated a Buy rating on Golden Star Resources Ltd (GSS) today and set a price target of $4.40. The company’s shares closed yesterday at $3.89, close to its 52-week high of $4.18.
Ihle observed:
“We maintain our Buy rating while increasing our price target from $4.00 per share to $4.40 per share. We note our higher PT was due to our revised long-term gold price and updated financials. Our valuation is based on a DCF of the Prestea and Wassa mines, utilization a 9% discount rate for each, which is in-line for similar assets that carry equal geopolitical risks. We also add cash and subtract debt to reach our overall NAV for the firm. Risks. Commodity price risk; political risk; operating and technical risk.”
According to TipRanks.com, Ihle is ranked 0 out of 5 stars with an average return of -2.9% and a 41.7% success rate. Ihle covers the Basic Materials sector, focusing on stocks such as Solitario Exploration & Royalty, Northern Dynasty Minerals, and Paringa Resources Limited.
Golden Star Resources Ltd has an analyst consensus of Moderate Buy, with a price target consensus of $4.40.
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Golden Star Resources Ltd’s market cap is currently $296.3M and has a P/E ratio of 180.93. The company has a Price to Book ratio of -154.98.
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Golden Star Resources Ltd. engages in gold mining and exploration activities. It owns and operates the Wassa and Prestea mines situated in Ghana. It operates through the following business segments: Wassa, Bogoso or Prestea, Other, and Corporate. The company was founded by David A. Fennell on May 15, 1992 and is headquartered in Toronto, Canada.
