Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) has been viewed favourably by National Bank analysts on the back of a continued strong outlook for gold and silver prices.
Updating on Monday, Endeavour noted the bank reiterated an ‘outperform’ rating for the miner, as reported in The Globe and Mail last Friday.
“With an improving outlook for declining real rates, heightened geopolitical risk and continued strong global central bank purchases, gold and silver prices have responded favourably,” National Bank wrote.
These are up 11.1% and 14.2% year-to-date respectively, analysts noted, with gold having since hit another all-time high on Monday of just above US$2,350 per ounce.
“We've updated estimates and price deck on the back of a strong gold tape to start the year, which has seen numerous names across our coverage show significant share price gains,” the bank continued.
Endeavour’s share price target was hiked from US$37 to US$41 as a result, marking a 90% increase on Friday’s close.
“Despite the significant increase in precious metal prices, equity valuations remain near trough levels and are poised to play catch up,” analysts added.
Endeavour also noted an ‘Outperform’ rating from BDO Capital, with analysts placing its share price target at US$36.60 on average.