TD Securities upgrades Equinox Gold stock rating to Buy on attractive risk profile

Published 16/07/2025, 13:22
TD Securities upgrades Equinox Gold stock rating to Buy on attractive risk profile

Investing.com - TD Securities upgraded Equinox Gold (TSX:EQX) (NYSE:EQX) from Hold to Buy and raised its price target to C$12.00 from C$11.00. The gold producer, currently valued at $4.6 billion, appears undervalued according to InvestingPro Fair Value analysis.

The upgrade follows Equinox Gold’s underperformance since the CXB deal announcement in late February, with TD Securities viewing the current risk/reward profile as attractive.

The firm noted that the recent guidance reset for Equinox Gold represents a "risk-clearing event" for the stock.

TD Securities anticipates the market will now focus on Equinox Gold’s operational execution going forward.

The firm also highlighted potential upside catalysts for Equinox Gold related to possible portfolio optimization.

In other recent news, Equinox Gold reported its first-quarter earnings for 2025, which significantly missed analyst expectations. The company posted an earnings per share of -$0.08, falling short of the anticipated $0.14, and revenue came in at $423.7 million against a forecast of $550.59 million. Despite record gold production of 145,000 ounces, operational costs were high, and operations at the Los Filos mine were suspended, impacting overall output. Equinox Gold is focusing on debt reduction and optimizing its balance sheet, with $173 million in unrestricted cash at the end of Q1.

Additionally, Equinox Gold completed its acquisition of Calibre Mining, transforming it into a major gold producer. BMO Capital Markets resumed coverage of Equinox Gold with an outperform rating, highlighting the company’s potential to become a million-ounce-per-year producer. The firm forecasts production of 803,000 ounces in 2025 and 1,157,000 ounces in 2026, expecting increased production to generate substantial free cash flow. Equinox Gold is also prioritizing ramping up production at the Greenstone mine and exploring potential asset sales or consolidation post-merger. Despite current challenges, the company remains confident in meeting its full-year cost guidance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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