Turquoise Hill Resources (TRQ) Stock Coverage Initiated at BMO Capital

NEW YORK (TheStreet) -- Shares of Turquoise Hill Resources  (TRQ) were initiated with an "overweight" rating and $6.50 price target at BMO Capital on Monday.

Turquoise Hill Resources is an international mining company focused on mining operations of porphyry-style copper, gold, silver and molybdenum in Mongolia.

The firm expects Turquoise Hill's share price to benefit from increasing funds flow as the near-term milestones contribute to further de-risking.

Feasibility study, project funding, and ultimately underground construction approval at Oyu Tolgoi mine are making meaningful implications for the stock, BMO Capital added.

"In our view, progress made in underground development increases the probability of consolidation by Rio Tinto (RIO), Turquoise Hill's largest shareholder," BMO Capital analysts said.

Shares of Turquoise Hill Resources closed unchanged at $3.99.

Separately, TheStreet Ratings team rates TURQUOISE HILL RESOURCES LTD as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate TURQUOISE HILL RESOURCES LTD (TRQ) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good."

If you liked this article you might like

Beleaguered Valeant Appoints Lead Independent Director

Strong On High Volume: Turquoise Hill Resources (TRQ)

Turquoise Hill Resources (TRQ) Is Today's Strong On High Volume Stock

These 5 Stocks Have Small Price Tags -- and Big Gain Potential

Turquoise Hill Resources (TRQ) Flagged As Strong On High Volume