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On Monday, RBC Capital Markets raised its rating on Osisko Development Corp (ODV:CN) (OTC:RNGTF) shares from Sector Perform to Outperform, setting a price target of Cdn$5.00. The upgrade comes on the heels of positive developments regarding the company’s Cariboo project in British Columbia.
The Cariboo project, a fully-permitted underground mining operation, is gaining traction after overcoming a series of obstacles. RBC Capital’s Harrison Reynolds pointed out that the project, which has been backed by a seasoned management team, had previously suffered from underperformance due to a variety of challenges including development, permitting, and financing issues.
However, recent advancements have shifted the outlook for Osisko Development. The company has not only secured the necessary permits but has also streamlined its Feasibility Study (FS), solidifying the project’s economic viability. Reynolds believes that these steps forward could significantly improve investor sentiment toward the company.
RBC Capital sees the Cariboo project as a potentially attractive acquisition target. Alternatively, it could also hold considerable value for Osisko Development post-financing, especially with a clearer path to production anticipated by 2028. The firm’s analysts suggest that the current valuation of Osisko Development is compelling, indicating a favorable opportunity for investors.
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