Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) is on the cusp of a "transformational year", Stifel said in a broker note published on Thursday.
The investment bank reaffirmed its ‘buy’ rating on the FTES 250-listed gold producer while uplifting its target price to 2,250p from 2,200p.
Stifel drew attention to Endeavour's 2023 performance, which was marked by solid operational achievements across its portfolio and the resolution of a previously ongoing investigation related to the misconduct and irregular payments linked to the company's former boss.
This “enables the company to move forward with internal controls strengthened and governance credentials proven”, said Stifel.
Regarding operations, the American investment bank stated: “With the ramp-up of the Sabodala-Massawa expansion and the Lafigué development projects we expect the company to transition out of a heavy investment phase to generate meaningful free cash flow and support deleveraging and increased shareholder returns."
Financial projections provided by Stifel indicate a trajectory of growth for Endeavour, with gold sales anticipated to increase from 1083.5 koz in 2023 to 1321 koz in 2025.
Moreover, the adjusted earnings per share (EPS) are forecasted to grow from $0.93 in 2023 to $1.61 in 2025.
Endeavour shares are currently swapping for 1,602p after adding 1.4% on Thursday.