Scotiabank Believes Lundin Mining (TSX: LUN) Still Has Room to Grow

By Jason Carr

Lundin Mining (TSX: LUN), the Materials sector company, was revisited by a Wall Street analyst yesterday. Analyst Orest Wowkodaw from Scotiabank reiterated a Buy rating, with a C$11 price target.

According to TipRanks.com, Wowkodaw is a top 100 analyst with an average return of 34.3% and a 73.7% success rate. Wowkodaw covers the Basic Materials sector, focusing on stocks such as Teck Resources Limited, Nevsun Resources Ltd, and Taseko Mines Limited.

Currently, the analyst consensus on Lundin Mining is Strong Buy and the average price target is C$10.71, representing a 7.6% upside.

In a report issued on November 5, BMO Capital also reiterated a Buy rating on the stock with a C$11.25 price target.

Based on Lundin Mining’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of C$677 million and quarterly net profit of C$165 million. In comparison, last year the company earned revenue of C$469 million and had a GAAP net loss of C$14.84 million.

Lundin Mining Corp. is a metals mining company with operations and development projects in Chile, Portugal, Sweden and Spain and the U.S., producing copper, zinc, lead and nickel. Its projects include Neves Corvo, Zinkgruvan, Aguablanca, Galmoy and Tenke Fungurume and Eagle. The company was founded on September 9, 1994 and is headquartered in Toronto, Canada.

The company’s shares closed on Monday at C$9.95, close to its 52-week high of C$10.22.