Following Lundin Mining's downfall in the summer and the past few weeks, the valuation of the mining company has become more attractive. And the long-term outlook is bright, for example, a substantial improvement is expected on the cash flow front as of next year, writes Swedish periodical Affärsvärlden.
This means Handelsbanken Capital Markets in an analysis where the recommendation is lifted to buy from reduced and the target price is raised to 52 from SEK 50, as the news agency reported on Monday morning.
"As the valuation has become more attractive and the long-term outlook is bright, we estimate it's time to take a positive position on the stock," notes the bank.
The third quarter is expected to be quite clumsy, but a lightning in the mine is expected.
"We expect Lundin Mining's report for the third quarter, October 24, to be relatively weak. The price of copper, which accounts for more than 60 per cent of the company's exposure, has fallen by 11 per cent since the previous quarter and will weaken the result ", writes the bank and continues:
However, we expect the operational development to remain good and expect higher results in the next reports, supported by higher volumes and better prices "
"As the valuation has become more attractive and the long-term outlook is bright, we estimate it's time to take a positive position on the stock," notes the bank.
The third quarter is expected to be quite clumsy, but a lightning in the mine is expected.
"We expect Lundin Mining's report for the third quarter, October 24, to be relatively weak. The price of copper, which accounts for more than 60 per cent of the company's exposure, has fallen by 11 per cent since the previous quarter and will weaken the result ", writes the bank and continues:
However, we expect the operational development to remain good and expect higher results in the next reports, supported by higher volumes and better prices. "
