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Investing.com - JPMorgan has initiated coverage on Endeavour Mining (LON:EDV) with an Overweight rating and a price target of GBP50.00, representing a potential 63% upside from current levels.
The West African gold producer, with a market capitalization of approximately $10 billion and a member of the FTSE-100 Index, operates a low-cost asset base producing about 1.2 million ounces of gold annually across Côte d’Ivoire, Senegal, and Burkina Faso.
Management expects production to grow approximately 25% to 1.5 million ounces per year by 2030, according to JPMorgan’s analysis, which aligns with the investment bank’s bullish outlook on gold prices.
Despite higher capital expenditures anticipated during 2026-2028, JPMorgan forecasts Endeavour Mining will offer free cash flow yields of 19% and 16% in 2026 and 2027, respectively, while currently trading at 3.0x and 2.6x EV/EBITDA for those years.
The investment bank acknowledges higher geopolitical risks compared to peers, particularly citing Côte d’Ivoire’s recently proposed mining code revisions, but suggests the company’s approximately 40% EV/EBITDA discount versus peers indicates these risks are already priced into the stock.
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