RBC Capital Markets analyst Michael Curran remains bullish on Jaguar Mining Inc. (JAG) as the company's strong recent performance, bolstered by a bevy of upcoming events, seems poised to continue.
in a note to clients Mr. Curran said:
Jaguar shares remain significantly undervalued at the current time, and we retain our Outperform rating.He maintained his price target of C$16 per share, representing an upside of roughly 35% from its current price.
His positive outlook on the company stems in large part from the impressive performance of the stock that has seen Jaguar shares jump 102% during the recent gold rally between Aug. 2007 and Mar. 2008. In comparison, he notes gold gained 50% during the same period. He added that since May 14, Jaguar shares increased 16% versus a 7% gain for the price of gold.
Going forward Mr. Curran's optimism rests on a series of short-term potential catalysts. In the next two months, start-up at the new Paciencia mine in Brazil is expected, while the neighboring Caete project feasibility study will come out in the second quarter. As well, multiple drill results expected shortly from several deposits could also provide further positive news, the analyst added.