Canaccord Genuity cuts Adriatic Metals stock rating amid takeover talks

Published 05/06/2025, 06:26
Canaccord Genuity cuts Adriatic Metals stock rating amid takeover talks

On Thursday, Canaccord Genuity analysts downgraded Adriatic Metals stock (ASX:ADT) from Speculative Buy to Hold. The rating change comes as the company confirmed ongoing discussions with Dundee Precious Metals about a potential takeover offer. The price target was raised to AUD5.50 from AUD4.55.

Adriatic Metals revealed on May 21 that it is in negotiations with Dundee Precious Metals, which is considering an offer for the entire issued capital of Adriatic Metals. Following this announcement, the company’s share price increased by 40%.

To support the discussions, Adriatic Metals has granted Dundee Precious Metals access to limited due diligence information. Both firms have indicated that talks are still in progress, and there is no assurance that a firm offer will be made.

The adjustment in the stock rating reflects the significant rise in Adriatic Metals’ share price since the news of the potential takeover emerged. The revised price target suggests a cautious approach amid the ongoing negotiations.

Investors are advised to monitor developments closely as the situation evolves, with no guarantee of a finalized offer at this stage.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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