Hochschild Mining was a higher yesterday against a backdrop of red in UK markets. The shares appear to have been in the process of bottoming out over the past few months and have now completed an bottom. This is a powerful reversal pattern and suggest there will be more upside over the medium term.
Hochschild Mining currently ranks above average in our fundamental model with exceptional scores on value and momentum metrics. The shares have significantly outperformed the market over the past 1 to 3 months and we expect this to continue.
The company recent produced its 2nd best production performance in its history.
RBC Capital Markets reiterated their ‘Outperform’ rating on the 5th July 2019 with a 260p price target.
Global markets are in decline which could prompt even more demand for safe haven assets like gold .
The overall market is very volatile. This could impact the performance of all assets in the short term.
Berenberg bank issued a sell rating on the 17th July 2019 with a 165p price target.
Recent market declines have been short lived, if this occurs again investors may seek risker assets.
Entry At Market (208p)