Friday, November 12, 2010

Taseko Mines (NYSE:TGB) Now a Value Story says TD Newcrest

Taseko Mines (NYSE:TGB) has taken a big hit since the announcement concerning the decision to not allow them to work their Prosperity property.

Even so, TD Newcrest actually upgraded Taseko from "Reduce" to "Hold."

"We are maintaining our target price and increasing our rating to HOLD from Reduce following share price weakness on the negative Prosperity permitting decision. The potential return to our target is 6.6%. We believe Taseko shares are fairly valued at these levels and that Taseko has become a value story rather than a growth story," said TD.

The copper and molybdenum miner announced it earned $1.4 million or a penny a share in its latest quarter, up from a loss of $2.4 million or one cent a share in the same quarter last year. On the negative side, revenue dropped to $37.5 million from $40.4 million.

Taseko does have some room to move, as it has about $200 million in cash, and is growing it on a quarterly basis from their Gibraltar mine.

Taseko closed Thursday at $4.66, gaining $0.01, or 0.22 percent. TD Newcrest has a price target of C$5.00 on them.

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