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TD Securities Thinks Capstone Mining’s Stock is Going to Recover


Capstone Mining (TSX: CS), the Materials sector company was revisited yesterday, and remains undervalued for at least one analyst on the street. Analyst Craig Hutchison from TD Securities remains bullish on the stock and has a C$1.60 price target.

According to TipRanks.com, Hutchison is a 4-star analyst with an average return of 17.2% and a 47.8% success rate. Hutchison covers the Basic Materials sector, focusing on stocks such as Taseko Mines Limited, Capstone Mining Corp, and Denison Mines.

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Currently, the analyst consensus on Capstone Mining is a Strong Buy with an average price target of C$1.57.

Based on Capstone Mining’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of C$9.89 million. In comparison, last year the company had a net profit of C$25.39 million.

Capstone Mining Corp. engages in mining, exploration and development of mineral properties. It also operates mines in the US, Mexico and Canada. The company operates its business through five segments: Pinto Valley, Cozamin, Minto, Santo Domingo and Other. Capstone Mining was founded by Darren Pylot Murvin in 1987 and is headquartered in Vancouver, Canada.

The company’s shares closed on Thursday at C$0.65, close to its 52-week low of C$0.64.