H.C. Wainwright Remains a Buy on Sierra Metals Inc (SMTS)

By Austin Angelo

H.C. Wainwright analyst Heiko Ihle reiterated a Buy rating on Sierra Metals Inc (NYSE: SMTS) today and set a price target of $4.25. The company’s shares closed yesterday at $2.60.

Ihle said:

“We maintain our Buy rating and $4.25 per share price target. Our valuation is based on an unchanged and equally weighted composite of net asset value (NAV) and cash flow per share (CFPS). We apply a 12x multiple to our 2018E CFPS, while our NAV analysis utilizes 9.0% discount rates at Yauricocha and Bolívar.”

According to TipRanks.com, Ihle is a 2-star analyst with an average return of 0.1% and a 32.5% success rate. Ihle covers the Basic Materials sector, focusing on stocks such as Solitario Exploration & Royalty, Americas Silver Corporation, and Golden Star Resources Ltd.

Sierra Metals Inc has an analyst consensus of Moderate Buy, with a price target consensus of $4.25.

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Based on Sierra Metals Inc’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $10.84 million. In comparison, last year the company had a GAAP net loss of $6.52 million.

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Sierra Metals, Inc. engages in the production, exploration, and development of precious and base metals. It operates through the Peru and Mexico geographical segments. The Peru segment consists of Yauricocha Mine. The Mexico segment conssits of Bolivar and Cusi Mines. The company was founded on April 11, 1996 and is headquartered in Toronto, Canada.