RE: Peel Hunt7 Aug 2019 09:40
Peel Hunt has set a near-term target price at 70p for the London-listed stock but stressed the longer-term valuation would be "substantially higher".
"We currently have Alpala accounting for over 90% of the SolGold valuation, which we think undervalues the regional project portfolio. Even on Alpala value alone we see strong upside to our target price of 70p/share.
"However, our longer-term in-production valuation shows substantially greater potential upside to fair value, depending on how the company decides to finance the project," Huff said.
Not only does Huff think SolGold is fundamentally undervalued, he also continues to believe that it remains a take-out target around the definitive feasibility stage, some 18 months out.
"The current market cap is at a significant discount to what many majors would pay for one of the largest copper development projects globally as well as a pipeline of additional projects."