Cormark raises B2Gold stock to Buy, price target to C$6.25

On Friday, B2Gold Corp . (TSX:BTO:CN) (NYSE: BTG) received an upgraded stock rating from Cormark Securities, moving from Market Perform to Buy. The firm also increased its price target on the company’s shares to C$6.25, up from the previous C$4.50. According to InvestingPro data, the stock has shown strong momentum with a 10.63% return over the past week, while offering an attractive dividend yield of 5.69%.

Cormark analyst Richard Gray stated that the Net Asset Value (NAV) of B2Gold (NYSE:BTG) remains consistent at C$6.25 following the year-end update. The upgrade and price target adjustment reflect a positive outlook for the mining company. Gray highlighted that the stock has potential for outperformance, particularly with the Goose project nearing its initial production phase and diminishing investment risk concerns in Mali. InvestingPro analysis reveals that analysts expect significant sales growth this year, with revenue forecast to increase by 42% in FY2025.

The analyst noted that B2Gold’s shares have underperformed compared to its peers, citing a flat performance against a 37% increase in the GDX (NYSE:GDX) (Gold Miners Index) over the past 14 months. However, Gray believes that the factors causing this lag are subsiding. The company’s moderate debt levels and current ratio of 1.55 suggest a stable financial position, according to InvestingPro data, which provides comprehensive analysis through its Pro Research Reports available for over 1,400 US stocks.

B2Gold’s current trading value, as pointed out by Gray, is only 0.63 times its NAV, which he suggests offers a chance for a re-rating. He also mentioned that the valuation is even more attractive when considering the spot price, where the shares trade at just 0.50 times NAV.

The Cormark analyst’s comments underscore a potential turnaround for B2Gold as the company approaches a significant milestone with the Goose project and as concerns over its investments in Mali decrease. The new price target of C$6.25 represents Cormark’s confidence in the company’s ability to capitalize on these upcoming developments.

In other recent news, B2Gold Corp . reported its fourth-quarter gold production at 186,000 ounces, closely matching BMO Capital’s estimate of 185,600 ounces but falling short of the consensus estimate of 204,600 ounces. For the entire year, B2Gold produced 804,800 ounces, which was at the lower end of its revised guidance of 800,000 to 870,000 ounces. The company reaffirmed its capital expenditure estimate of C$1,540 million for the Goose project, which is on track to begin gold production soon. However, B2Gold’s production outlook for 2025 was mixed, with estimates slightly below BMO Capital’s forecast and higher-than-expected cost projections. As a result, BMO Capital Markets adjusted B2Gold’s price target to Cdn$7.00 from Cdn$8.50 but maintained an Outperform rating on the stock. Additionally, B2Gold announced a reduction in its dividend, aligning with its strategic adjustments. These developments reflect the company’s ongoing commitment to its production and expenditure plans despite the challenges.

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