Barclays starts Endeavour Mining at ‘overweight’
Barclays initiated coverage of gold producer Endeavour Mining at ‘overweight’ on Wednesday with a 2,350p price target.
The bank said the company's asset quality, returns on equity and balance sheet are among the best in its global precious metals coverage.
"Yet it is also one of the cheapest stocks on all metrics. That reflects perceived risks over its geographical exposure, propensity for M&A, mine lives, and reliance on refractory processing for part of its growth plans," it said.
"However, we argue these concerns are largely misplaced. Meanwhile, gold is one of the few inflation hedges not to have risen significantly."
At 1540 BST, the shares were up 2.7% at 1,709.80p.