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Investing.com - RBC Capital has lowered its price target on Hochschild Mining Plc. (LSE:HOC) to GBP3.20 from GBP3.40 while maintaining an Outperform rating on the stock.
The adjustment follows Hochschild’s downgrade of its 2025 production and cost guidance due to ongoing challenges at its Mara Rosa operation.
RBC Capital analyst Marina Calero noted that while the guidance downgrades were not surprising, the projected cost levels for 2025 necessitated a recalibration of future forecasts, resulting in the reduced price target.
Despite the target reduction, RBC Capital continues to view Hochschild Mining as offering "compelling exposure to gold/silver" and expects the shares to re-rate as production ramps up at Mara Rosa.
The investment firm anticipates Hochschild will return to double-digit free cash flow yield levels in 2026 as operations improve at the troubled site.
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