National Bank of Canada Keeps Outperform" Rating, C$27 Price Target On Alamos Gold After Q1 Results

National Bank of Canada on Wednesday left Alamos Gold Inc. (AGI.TO, AGI) with an "Outperform" rating and a C$27 price target after the release of the company's first-quarter results. Alamos reported an adjusted EPS of US$0.13, slightly below the bank's forecast and consensus estimate of US$0.14, with CFPS coming in a couple pennies shy of the bank's estimate. Quarterly gold production of 135,700 ounces beat National Bank's estimate of 131,400 ounces, helped by a strong quarter from Mulatos, where La Yaqui Grande (LYG) set a new quarterly production record and continues to outperform guidance. Q1 2024 production represented near 26.9% of the midpoint FY production guidance. National noted management is guiding to Q2 2024 production of 123-133koz (NBF estimates 135koz). However, the bank noted Alamos is "setting a track record of consistently beating quarterly guidance, which gives it conviction that 2024 guidance may prove to be conservative". National Bank expects Alamos to trade in line to modestly down versus peers today due to the modest miss on adjusted EPS. The bank said it sees nothing alarming to change its outlook for the company, and continues to view the miner as one of the best mid-tier growth stories in its coverage universe. "In our view, Alamos Gold is an ideal name to own for an investor with a multiyear investment time horizon thanks to the expected strong medium-term growth in EBITDA primarily driven by the Island Phase 3+ expansion, and the expected continued NAV/sh growth from the numerous successes being realized from the ongoing robust exploration programs." Alamos gained 1% to $21.01 at last look early Thursday. Price: 21.05, Change: +0.25, Percent Change: +1.20