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Investing.com - Desjardins downgraded Lundin Gold Inc. (TSX:LUG) (OTC:FTMNF (OTC:LUGDF)) from Buy to Hold while raising its price target to C$70.00 from C$62.00.
The rating change comes as Lundin Gold shares have surged 125% year-to-date, pushing the stock’s valuation significantly above industry peers, according to Desjardins.
The mining company now trades at 1.3 times Desjardins’ net asset value per share estimate and 10.4 times its 2025 enterprise value to EBITDA forecast, compared to peer averages of 0.73 times and 7.1 times, respectively.
Desjardins characterized Lundin Gold as a "well-run company with a high-quality asset" that continues to outperform expectations and demonstrates "significant exploration upside."
Despite the positive operational assessment, Desjardins indicated the pace of share price appreciation through the first half of 2025 is "not sustainable" and recommended that investors "take some profit."
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