An analyst initiated coverage of Coeur Mining (CDE +2.86%) on Tuesday, and many investors followed his advice by buying shares of the company. An uptick in gold and silver prices didn’t hurt either. Over the course of the trading day, the company’s stock rose by nearly 3% while the S&P 500 index dipped by 0.2%.
A new bull says buy
The initiating individual was CIBC prognosticator Cosmos Chiu, who flagged Coeur as an outperformer (meaning its stock is a buy) at a price target of $40. That’s almost double the company’s most recent closing price.
Image source: Getty Images.
According to reports, Chiu waxed bullish about Coeur’s performance in 2025, noting in particular the company’s record free cash flow (FCF) of $666 million. This derived from what the analyst considers to be excellent performance in each of the five mines the company currently operates.
Chiu also feels that the company’s deal to acquire peer New Gold, expected to close by the end of June, will be a transformative event. Among other positives, New Gold will bring Coeur another two major operating mines in Canada, and a potential $3.2 billion in additional FCF.
The pundit’s timing is fortuitous; on Tuesday, the prices of gold, silver, and other precious metals rose notably, on the back of a softening U.S. dollar and the continued investor thirst for “safety” assets.
Today’s Change
(2.86%) $0.65
Current Price
$23.35
Key Data Points
Market Cap
$15B
Day’s Range
$23.10 – $24.04
52wk Range
$4.58 – $27.77
Volume
17M
Avg Vol
24M
Gross Margin
39.31%
Larger footprint
We should bear firmly in mind that the latest price swings for such goods have been rather volatile, largely due to the Iran war. Although high-ranking U.S. officials, not least President Trump, have pronounced the conflict to be going well and possibly coming to an end soon, that might not match the reality on the ground.
Yet even though we’re in for some volatility, Coeur’s expanding its business in a smart way and it’ll surely be a powerhouse when and if the New Gold acquisition closes. This stock is one of the better-looking precious metal plays at the moment, in my view.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
