The firm did so "despite lowering our 12- month target price to C$7.50 from C$8.00. In our opinion, the correction in the share price has created an attractive entry point with the shares now more than pricing in the development risk with the Blackwater and El Morro projects."
"We like the forecast 39% return from current levels to our risk-adjusted target price and believe the shares (at current levels) should be attractive to investors for a number of reasons," they noted.
TheStreet Ratings team rates NEW GOLD INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate NEW GOLD INC (NGD) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself."