Last week, Lundin Mining Corporation (TSX: LUN) CEO Peter Rockandel sat down with BMO Capital Markets, whom hosted an investor meeting. BMO Capital Markets said that this roadshow was “an opportunity to reset expectations and to address Lundin’s recent guidance update.” BMO reiterated their C$15 12-month price target and market perform rating on Lundin Mining.
Currently, Lundin Mining has 23 analysts covering the stock with an average 12-month price target of C$12 or a 20% upside to the current stock price. Out of the 23 analysts, 2 have strong buy ratings, 7 have buys, 13 have hold ratings and 1 analyst has a sell rating. The street high price target sits at C$16.50 while the lowest comes in at C$8.56.
BMO says that they walk away from last week “with optimism that Lundin will make successful improvements to the operations,” but understand that they need to first create a track record to rebuild their credibility.
They add that a key theme of last week’s meeting was investors trying to understand the differences and similarities between the old CEO and Peter. They believe that Peter will be more strict in improving their operations and expect “a strengthening of the technical depth of the senior operating team.”
BMO believes that the company will continue to pursue M&A to grow but believes the targets to be quite competitive which will likely limit any near-term M&A happening. BMO says that Lundin will be looking for a copper-focused asset, primarily Americas located, that is in production or has visibility into cash flow.
Lastly, BMO believes that under the new CEO, the market will return to favour the company as it delivers on its promises. Although they note that it will take some time, they believe that the company is setting itself up for a successful 2022.
Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.