Investment rating raised to Outperform. We are establishing a price target of $9.00 per share which represents 17.5% price appreciation potential based on the recent closing price. We updated our DCF valuation after reviewing near and longer-term capital and exploration expenditures. We anticipate much stronger second half financial performance relative to the first six months due to stronger gold and silver prices and full quarter contributions from the Palmarejo mine where production was negatively impacted during the second quarter due to COVID-related work restrictions in Mexico.Increasing estimates. Following a review of our third quarter estimates, we are increasing our 2020 EPS and EBITDA estimates to $0.07 and $191.8 million from $0.05 and $190.6 million, respectively. Additionally, we have raised our 2021 EPS and EBITDA estimates to $0.28 and $279.9 million from $0.23 and $251.9 million, respectively. Our increased estimates reflect gross margin improvement due to higher commodity prices and reductions in some expense items, including amortization.Constructive metals price outlook. In our view, the outlook for gold and silver prices remains favorable albeit with anticipated volatility. We think gold prices in the range of $1,750 to $2,000 and silver in the mid-$20s appear durable and we believe the macroeconomic outlook could support an upward trend with a smaller positive slope.Catalysts for the stock. While metals prices will continue to exert the most influence on CDE shares, we think investors will begin to focus more on the long-term potential of the Rochester expansion and the company’s improved growth outlook due to increased investment in exploration to upgrade and expand its resource base.Read More >>