Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) is poised to re-rate this year driven by a wave of cash flow that will enable supernormal shareholder returns, that’s according to analysts at Berenberg.
The European bank, in a note, has repeated a ‘buy’ recommendation with a price target of 2,100p (current price: 1,646p).
It follows a set of fourth quarter results described by Berenberg analyst Richard Hatch as ‘decent’.
“The key figure for us, and likely the market, we think, was fourth FCF of US$268 million, which showed stark improvement from the US$97 million achieved in the third quarter and is an early indication that Endeavour’s anticipated upward FCF inflection is taking shape,” Hatch said.
“We continue to forecast a significant uptick in FCF [free cash flow] generation to US$614m in 2025.”
The Berenberg analyst added: “We think the market is looking for Endeavour to capitalise on the strong gold price environment and deliver on its promises to increase shareholder returns via both dividends and buybacks.”