In a May 6 research note, analyst Joe Reagor reported that ROTH Capital Partners lowered its target price on Endeavour Silver Corp. (EDR:TSX; EXK:NYSE; EJD:FSE) to US$2.90 per share from US$3 after adjusting its estimates following release of the company's Q1/19 financial results. Endeavour's current share price is about US$1.86.
The reduced target is due to the "poor Q1/19 financial performance" of the company, which impacted ROTH's estimated valuation.
Reagor described Endeavour's Q1/19 results as "mixed but skewed to the negative side." Revenue was a beat at $29.1 million versus ROTH's forecast of $28.4 million. However, earnings per share at $0.02 fell short of ROTH's expectation of $0.10.
Unhappy with the weak first-quarter numbers, Endeavour's management took "swift action," Reagor noted, instituting measures to cut costs and improve performance. For one, the executives took a pay cut, and the Vancouver administrative staff members are working fewer hours. Also, the company assigned a new senior mine planning engineer who will review and revise mine plans to optimize operations. The company should significantly benefit from these changes, the analyst added.
ROTH maintained its Buy rating on Endeavour.
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Disclosures from ROTH Capital Partners, Endeavour Silver Corp., Company Note, May 6, 2019
Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
ROTH makes a market in shares of Endeavour Silver Corp.and as such, buys and sells from customers on a principal basis.
Shares of Endeavour Silver Corp. may be subject to the Securities and Exchange Commission's Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities.
ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months.
