Bank of America Upgrades Eldorado Gold to Buy as Greek Mine Nears Production
Bank of America upgraded Eldorado Gold from Underperform directly to Buy, skipping a Neutral rating. The move follows the company's progress at its Skouries copper-gold project in Greece, which is nearing full production by year-end and has moved past major risks according to analyst Lawson Winder. The upgrade comes with an increased 12-month price target from $32 to $54 per share. Eldorado’s stock closed near $41.92 on Friday, suggesting potential for a nearly 30% gain if the new target is met. The mine's connection to Greece’s power grid will reduce operational costs and improve efficiency. Eldorado plans to release an updated technical report in December that could provide more clarity about Skouries’ long-term production capacity. Analysts expect significant free cash flow generation once operations are fully underway, potentially leading to higher dividends or buybacks.
Topics: Earnings Outlook Gold Mining Stock Upgrade