The recent update from Petra Diamonds (LON:PDL) has prompted a re-think by broker finnCap.
The most significant changes are a reduction in its valuation of the Finsch and Kimberley mines, though this is mostly offset by increases at Koffiefontein and Williamson.
The upshot is the finnCap’s price target is tweaked back marginally to 183 pence a share from 186 pence. That still provides investors 45% upside if the stock matches the new target.
Petra, which has advanced 22% in the last three months, closed at 126 pence, valuing the business at over £640mln.
It seems diamonds are fast becoming an investor's best friend as a number of growth stocks in the sector have sparkled recently.
The market for the polished stones was severely damaged by the 2008 financial crisis but prices have enjoyed relative stability since they corrected in 2012 and this year has seen improved rough diamond prices, although this trend has flattened since May.
Importantly, factors such as an improved US economy, continued Asian growth and supply constraints means the outlook for the sector remains positive, say experts.
Several firms, at various stages of the diamond cycle, including production, have come to the fore recently.
Junior DiamondCorp (LON:DCP), for example, has seen shares rise over 46% since late July, while its larger rival Gem Diamonds (LON:GEM) has advanced 47% since hitting a low point back in June.