Gammon Gold (NYSE:GRS) Price Target Raised by Canaccord Genuity

Canaccord Genuity announced it is raising its price target on Gammon Gold Inc. (NYSE:GRS), citing Ocampo production and valuation. Canaccord maintains a "Hold" on Gammon.

"Gammon recently released Q3/10 operating results from its 100%-owned Ocampo Au/Ag operation in Mexico. We have also increased our peak Au and Ag assumption, which we apply to Ocampo in our valuation, to US$1,500/oz Au from US$1,300/oz Au and to US$25/oz Ag from US$21.5/oz Ag. The net-net result is an increase in our target price," said Canaccord.

Gammon recently announced production at its Ocampo mine increased by 10 percent over its last quarterly production result.

Gammon closed Wednesday at $7.35, gaining $0.31, or 4.40 percent. Canaccord has a price target of C$8.50 on the gold miner, up from C$7.50.