First Quantum Minerals Ltd. : Expected to triple its annual production
By Lara Villeneuve
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
CA$18.95 | CA$0 | CA$17.9 | -100% |
From a fundamental viewpoint, the company observed a rapid growth. Turnover is expected at 3.26 billion Canadian dollars for 2012, 26% up from last year. With a net margin up from 40% to 43% for 2012, net result should be at 1.4 billion Canadian dollars and BNA would double at CAD 3.72. Thomson-Reuters consensus is confident with 9 analysts at “Hold”, 8 at “Accumulated” and 3 at “Buy”. Average price target is fixed at USD 26.1, representing a 37% growth potential.
Technically the stock presents a consolidation phase in a range includes between CAD 17 and CAD 18.8. The ongoing sessions could be the crossing point of the CAD 18.82 short-term resistance. The 20-days moving average comes in support and could bring the stock on the way to the CAD 22.5 area, level of April 2012.
Investors could take a buy position on the stock after the mid-term resistance crossing with an objective at CAD 22.5. A stop loss will be engaged at CAD 18.5.