Eldorado Gold (EGO) Stock Coverage Initiated at BMO Capital

NEW YORK (TheStreet) -- Eldorado Gold (EGO) stock coverage was initiated at BMO Capital Markets with a "market perform" rating with a price target of $6. 

Shares are dropping 0.95% to $4.18 in Tuesday's early morning trading session.

The firm cited that political uncertainty in Greece, which has been in a state of turmoil, has been at the forefront of investor consciousness.

"Our analysis indicates that shares are trading at a discount to the senior gold producers reflecting an elevated risk profile with respect to the Greece factor," analysts said.
 
However, analysts see a focused strategy that plays well into the growth-oriented investor focused on long-term value.
 
Separately, TheStreet Ratings team rates ELDORADO GOLD CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
 
"We rate ELDORADO GOLD CORP (EGO) a SELL. This is driven by multiple weaknesses, 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 unimpressive growth in net income and generally disappointing historical performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 126.4% when compared to the same quarter one year ago, falling from $31.27 million to -$8.24 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 30.63%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 125.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, ELDORADO GOLD CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • 47.33% is the gross profit margin for ELDORADO GOLD CORP which we consider to be strong. Regardless of EGO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, EGO's net profit margin of -3.45% significantly underperformed when compared to the industry average.
  • ELDORADO GOLD CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, ELDORADO GOLD CORP turned its bottom line around by earning $0.14 versus -$0.91 in the prior year.
  • You can view the full analysis from the report here: EGO Ratings Report

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