CIBC initiates Coeur Mining stock coverage with Outperformer rating

Investing.com - CIBC initiated coverage on Coeur Mining Inc (NYSE:CDE) with an Outperformer rating and a price target of $40.00, according to a report released Monday. The stock currently trades at $23.86, up 342% over the past year, though still below its 52-week high of $27.77.

The firm noted that 2025 marked a key inflection point for the company, with Coeur Mining generating record free cash flow of $666 million, up from negative $9 million in the prior year. According to data, the company’s levered free cash flow reached $665.72 million in the last twelve months, with analysts expecting continued profitability this year—one of 14 key insights available on the platform. The performance was driven by solid results at each of the company’s five operating mines: Las Chispas, Palmarejo, Rochester, Kensington, and Wharf.

In November 2025, Coeur Mining announced a proposed all-share acquisition of New Gold, which has since been approved by New Gold shareholders with an expected closing in the first half of 2026. The acquisition adds New Gold’s two key operating assets in Canada, Rainy River and New Afton, to Coeur Mining’s portfolio.

CIBC projects the combined company will generate $3.2 billion in free cash flow in 2026 using the firm’s commodity price deck, or approximately $2.4 billion at spot prices, representing a free cash flow yield above 10%. The pro-forma company’s net asset value will consist of 46% Canada, 33% United States, and 21% Mexico.

The combined entity will have a market capitalization of approximately $27 billion and more than 1.2 million in annual gold-equivalent production. Coeur Mining will continue to produce more than 20 million ounces of silver per annum, positioning it as one of the top-2 silver producers in CIBC’s coverage universe. Analysis suggests the stock remains undervalued at current levels, with a Financial Health score of "GREAT." For deeper analysis, CDE is among the 1,400+ US equities covered by comprehensive Pro Research Reports.

In other recent news, Coeur Mining reported its fourth-quarter 2025 earnings, exceeding analysts’ expectations with an earnings per share (EPS) of $0.35, compared to the forecasted $0.30. However, the company’s revenue did not meet projections, totaling $674.7 million, slightly below the anticipated $683.38 million. These developments highlight the company’s ability to surpass earnings estimates while facing challenges in meeting revenue expectations. Analysts from various firms have noted these results, though specific upgrades or downgrades were not mentioned. The company’s stock price experienced notable movement following the earnings announcement. These recent developments provide investors with insights into Coeur Mining’s financial performance and the market’s reaction.