B.Riley FBR analyst Adam Graf initiated coverage with a Buy rating on McEwen Mining (MUX) today and set a price target of $4.20. The company’s shares closed last Monday at $1.81.
Graf observed:
“We are initiating coverage of McEwen Mining Inc. (MUX) with a Buy rating and a 12-month price target of $4.20 per share. We believe that MUX shares offer investors (1) a small-cap vehicle with leverage to gold, (2) a growth story at current gold prices, (3) potential exploration upside and mine life extension at current mine sites, and (4) the potential to monetize non-core assets. McEwen focuses on building and operating high-return precious metal mines in the Americas. Founder and largest shareholder Rob McEwen seeks to build a mid-cap mining company through the acquisition and operation of mines in known gold districts. Mr. McEwen has a dedication to exploration and recognizes that today’s large-cap miners have largely been created from past exploration success—and from the conversion of that success into high-return cash flow.”
According to TipRanks.com, Graf is a 1-star analyst with an average return of -3.3% and a 41.0% success rate. Graf covers the Basic Materials sector, focusing on stocks such as Gold Standard Ventures Corp, Newmont Mining Corporation, and First Majestic Silver.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for McEwen Mining with a $3.85 average price target.
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Based on McEwen Mining’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $13.01 million. In comparison, last year the company had a GAAP net loss of $5.38 million.
Based on the recent corporate insider activity of 16 insiders, corporate insider sentiment is neutral on the stock.
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