Q: Good Morning
Using your crystal ball with the price of gold seemingly continuing to go higher where do you believe the top price would be for AEM?
Thks
Marcvel
Using your crystal ball with the price of gold seemingly continuing to go higher where do you believe the top price would be for AEM?
Thks
Marcvel
5i Research Answer:
We are not fond of such predictions, because when the gold sector runs, it can run hard. AEM is hitting new highs nearly daily, a fact of trading that does not worry us, and only encourages us more with positive momentum. At 22X earnings, in any sort of continued rally we might see it go above 30X earnings, which would be about a 36% gain, assuming EPS was the same. But with EPS also growing, we could see $175 here in a big rally. Remember this is largely a guess, but things look good for it right now, certainly.