Broker snap: Buy Fresnillo, says Galvan

21st Sep 2011 13:12

Galvan Research has labelled gold and silver miner Fresnillo as a buy with a target price of 2,100p."While Fresnillo shares have tracked down in line with the stock market in recent weeks, this week has seen a decent rebound off the back of the strong outlook by the miner given last month and strong ongoing prospects for precious metals prices. This turnaround marks shares out as a buy at Galvan Research," said head of research Andrew Gibson.The FTSE 100 firm reported last month that first half revenues rose from $605.7m to $1,056m, while earnings before interest, tax, depreciation and amortisation jumped from $394.3m to $757m. "Given our strong platform and the strength of precious metal prices, we continue to have confidence in the second half of this year," said chief executive Jaime Lomelin."Shares in Fresnillo have bounced off the current level of the 50-day moving average at 1,839p and while above the intraday low of today at 1,910p, the upside indicates the bottom of the September gap down towards 2,100p as a near term target," Galvan said.Shares were 0.98% higher at 1,962p.BC