TD Securities sets Equinox Gold stock at Hold with C$10 target

On Tuesday, TD Securities began coverage of Equinox Gold Corp (NYSE:EQX:CN) (NYSE: EQX), issuing a Hold rating and setting a price target of C$10.00. Wayne Lam, an analyst at TD Securities, provided insights into the rationale behind the rating. Lam noted that Equinox Gold is at a pivotal point in 2025, with significant attention on the progress at its Greenstone project. The company has shown strong momentum, with a 47% return over the past year and currently trading near its 52-week high of $6.65. According to InvestingPro data, analysts expect both sales and net income growth this year.

The analyst’s cautious stance is influenced by several factors. First, there is operational risk associated with the Greenstone project, which is crucial for the company’s future growth. Additionally, Equinox Gold is dealing with higher financial leverage, which could impact its fiscal stability - reflected in its current ratio of 0.85 and debt-to-equity ratio of 0.52. Lastly, the company’s recent history of not meeting its own guidance has led to a focus on improving execution. Despite these challenges, InvestingPro’s analysis indicates an overall "GOOD" financial health score.

Equinox Gold’s performance in the market will be closely watched by investors, especially considering the importance of the Greenstone project’s successful ramp-up. The Hold rating reflects a neutral expectation of the company’s stock performance in the near term.

The price target of C$10.00 set by TD Securities indicates the value at which the analyst believes the stock should trade at, given the current circumstances. This target is based on the analyst’s assessment of the company’s potential risks and opportunities.

Equinox Gold has not publicly responded to the initiation of coverage by TD Securities. The company’s shares will continue to be traded on the NYSE and the Canadian exchange, where investors can monitor any changes in stock value in response to the new analyst coverage.

In other recent news, Equinox Gold Corporation reported a record-breaking third quarter, with gold production reaching nearly 174,000 ounces and revenues amounting to $428 million. This robust performance was significantly boosted by the Greenstone mine, which began commercial production in October and contributed over 42,000 ounces in Q3. The company also reported an EBITDA of $114 million and an adjusted EBITDA of $142 million, reflecting a robust financial performance.

In other developments, Equinox Gold recently made a strategic decision to extend the life of its Fazenda Mine by an additional seven years. This decision comes after three years of concentrated exploration at the Fazenda Mine, with results surpassing the company’s expectations and leading to significant mine life extension and resource growth.

These recent developments point to a positive outlook for Equinox Gold, with the company forecasting strong production in Q4 and a continued focus on reducing leverage. The company’s 2024 production guidance for Greenstone has been updated to 110,000 to 130,000 ounces, and it plans to use free cash flow from mining operations to pay down debt. Equinox Gold’s recent developments reflect a strategic focus on growth and operational advancement.

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