Stifel has reiterated its 'buy' rating on Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) with a price target of 2,350p, citing the company’s sector-leading production margins, shareholder returns, and organic growth.
The investment bank pointed to Endeavour’s strong free cash flow generation in the fourth quarter of 2024, which reached a record $268 million, reinforcing its ability to deliver value to investors.
Endeavour's financials were impacted by several non-cash items, including a $199.5 million impairment charge related to exploration assets.
However, adjusted earnings per share of $0.45 came in ahead of Stifel’s forecast, helped by lower non-controlling interest expenses and gains from London Bullion Market Association pricing.
Stifel highlighted Endeavour’s improving balance sheet, with net debt falling by $102 million in the final quarter of 2024, reducing its leverage ratio to 0.55x adjusted EBITDA.
The company remains on track to hit its 0.50x target. Shareholder returns remain a key focus, with a record $140 million second-half dividend due in April and an active buyback programme, which has already seen $30 million worth of shares repurchased in early 2025.
On the operational side, Stifel noted Endeavour’s 4.5-million-ounce increase in proven and probable gold reserves, a 32% jump year-over-year, driven by resource conversion at the Assafou project and higher gold price assumptions.
The American bank expects the company’s transition from heavy investment into free cash flow generation to support continued deleveraging and enhanced shareholder returns.
With shares trading at 1,592p, Stifel sees a 47.6% upside to its price target.