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Broker Tips: Endeavour Mining, Greatland Gold, AstraZeneca

  • Berenberg raises Hochschild Mining to ‘buy’
  • Berenberg also raises Endeavour Mining price target to 2,800p
  • Greatland Gold price target raised to 26p by Berenberg
  • Deutsche raises its AstraZeneca price target to 11,500p
  • Jefferies raises the GlaxoSmithKline price target to 2,100p

Hochschild Mining (LSE: HOC), the London-based gold and silver miner operating in North, Central & South America, on Monday completed its acquisition of Toronto-based Amarillo Gold, the owner of the Posse gold project in Brazil. Hochschild announced the $105.6m acquisition last November. The acquisition is expected to generate ‘strong sustainable value for the company’, according to Hochschild CEO Ignacio Bustamant, and follows the announcement of a significant increase in resources at its Snip Gold Project in Canada. The stock has gained some 33% over the past month. Over the same period, gold has been trading sideways and is currently at $1,925/oz. Yesterday, Berenberg raised Hochschild Mining to ‘buy’ (from ‘hold’), upping the target price to 160p (from 130p).

Endeavour Mining (LON: EDV, TSX: EDV), a gold miner with operations in West Africa, has completed a feasibility study of its Sabodala-Massawa site in Senegal, and announced plans for expansion. Endeavour already produces 4.2 million tonnes a year from the site and will add a Biox plant to process 1.2 million tonnes of the high-grade refractory ores. Endeavour expects its plans will lift the site to ‘top tier status’. Endeavour shares are up 13.05% YTD. Yesterday, Berenberg raised the Endeavour price target to 2,800p (2,500p) with a ‘buy’ rating. Berenberg also raised the target prices of several other senior miners, including Fresnillo (‘hold’), Anglo American (‘buy’), Rio Tinto (‘buy’) and Centamin (‘buy’). Barclays, too, raised its Endeavour Mining price target, with an ‘overweight’ rating.

Greatland Gold (LON: GGP), owner of the Havieron gold-copper project in Paterson Province, Western Australia, has issued an update on the mine’s mineral resource, indicating a 50% increase in gold content, making the Havieron system ‘a world class deposit with significant growth potential’, according to CEO Shaun Day. The stock is down -16% YTD and -31.28% over the past 12 months. However, Berenberg yesterday raised the Greatland Gold price target to 26p (24p), giving it a ‘buy’ rating. Berenberg also raised the target prices of a number of other junior miners, including Petra Diamonds (‘hold’), Pan African Resources (‘buy’), Kenmare (‘buy’), Jubilee Metals (‘buy’), Griffin Mining (‘buy’) and Central Asia Metals (‘buy’). Berenberg’s exception was Polymetal, the Anglo-Russian gold and silver miner, which it reduced to ‘hold’ (‘buy’), with target 300p (500p), despite growing hedge fund interest in the stock.

AstraZeneca (LON: AZN) stock has had a strong start to the year, with a performance of 22.17% YTD, building on steady gains made over the past 12 months (47.60%) and also over the past five years (132%). On 28 March, Astra Zeneca gained authorisation from the EU to market Evusheld, a Covid-19 prevention drug. Deutsche Bank analysts said the stock has had ‘a strong relative start to the year that may well continue’, noting that AstraZeneca had outperformed its peers. Deutsche raised its AstraZeneca price target to 11,500p (10,500p), with a ‘buy’ rating.

GlaxoSmithKline (LON: GSK) is another UK pharma stock that has outperformed the sector, gaining 7.92% YTD and 34.60% over the past 12 months. Last week Glaxo gained approval from the US Federal Drug Administration for its Triumeq PD, a dispersible single-tablet regimen containing dolutegravir, for HIV treatment. Jefferies indicated its confidence about the drugmaker in the long term, though much depends on the successful implementation of its ultra-long-acting HIV regimens. Jefferies raised the Glaxo price target to 2,100p (1,925p), with a ‘buy’ rating.

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This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

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