Conroy Gold and Natural Resources PLC (AIM:CGNR, OTC:CGDNF) stock is an 'easy buy’ for analysts at First Equity research house after the company announced a gold discovery with grades of up to 123 grams per ton (4 ounces per ton) at its Longford-Down Massif project in Ireland.
The samples had the highest gold assay results returned since the company began exploration in the Longford–Down, the company said.
“With these outstanding results, we could see not only further upward share price movements in the near term ... but also that investors will now begin to appreciate the value in both technical and financial terms of Conroy Gold‘s discoveries and of further gold discovery upside potential over its extensive target rich gold project acreage,” First Equity's analysts said.
That near-term movement has come to fruition, as Conroy Gold shares have climbed nearly 18% to 20p Wednesday afternoon and are up 38% so far this year.
But even that is still well short of the firm’s 156p price target issued in April 2022.
“With such a wide gulf between our target price and the prevailing market price and moreover given these results and their implications, we easily arrive at a ‘buy’ recommendation,” the analysts added.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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