Cantor outlines how to navigate the emerging Bitcoin treasury sector
Investing.com - Berenberg has upgraded Boliden AB (SS:ST:BOL) (OTC:BDNNF) from Hold to Buy with a price target of SEK350.00, citing expectations for improved free cash flow generation.
The upgrade comes despite Boliden’s mixed operational track record and disappointing Q2 results released on July 18, which missed market expectations due to extended smelter maintenance periods and currency pressure.
Berenberg noted that while it remains cautious about Boliden’s operational execution, there are signs of stability emerging, though the company faced challenges accessing higher-grade ore at its Garpenberg mine in Sweden, resulting in trimmed grade guidance.
The research firm expects Q3 to show limited smelter maintenance requirements and projects it will be the company’s first positive free cash flow quarter of the year, supported by strong precious metals prices including gold, silver, and platinum group metals.
Berenberg highlighted that with two profitable mines now operating in the group—Somincor in Portugal and Zinkgruvan in Sweden—conditions appear favorable for sustained free cash flow generation and debt reduction, potentially allowing the stock to recover from current depressed levels and narrow its discount to net asset value.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.