Torex Gold Resources Gets a Buy Rating from Canaccord Genuity

By Austin Angelo

Torex Gold Resources (TSX: TXG), the Materials sector company was revisited yesterday, and remains undervalued for at least one analyst on the street. The company received a Buy rating from Canaccord Genuity’s analyst Rahul Paul, with a C$35 price target.

According to TipRanks.com, Paul is a 1-star analyst with an average return of -3.4% and a 40.0% success rate. Paul covers the Basic Materials sector, focusing on stocks such as Golden Star Resources Ltd, Detour Gold Corporation, and Fortuna Silver Mines.

Currently, the analyst consensus on Torex Gold Resources is Strong Buy and the average price target is C$33.17, representing a 30.2% upside.

In a report issued on June 19, Scotiabank also maintained a Buy rating on the stock with a C$34 price target.

Based on Torex Gold Resources’ latest earnings report for the quarter ending March 31, the company posted quarterly revenue of C$115 million and quarterly net profit of C$11.78 million. In comparison, last year the company earned revenue of C$0 and had a GAAP net loss of C$51.97 million.

Torex Gold Resources, Inc. is a Canadian based resource company, which engages in the exploration and development of precious metal resources with a focus on gold. It holds interest in Morelos gold project. The company was founded on November 13, 1980 and is headquartered in Toronto, Canada.

The company’s shares closed last Wednesday at $25.48.