UPDATE: Canaccord Genuity Upgrades Eldorado Gold Corp (EGO) to Buy

(Updated - April 4, 2014 12:50 PM EDT)

Canaccord Genuity upgraded Eldorado Gold Corp (NYSE: EGO) from Hold to Buy with a price target of C$8.50. Analyst Tony Lesiak believes its risk/reward profile has become favorable.

"ELD has underperformed its peers 6% on one month and 22% YTD. The share weakness was not unexpected given the potential for increasing concern with respect to the election cycle and hence permitting in Greece and Turkey. Some 34% of ELD’s un-risked NAV is subject to permitting/development risk," said Lesiak.

"ELD is currently trading at 0.68x our risked NAV estimate versus peers at 0.84x, – a 19% discount. On an un-risked (our best case) basis, the discount increases to 27%. If we fully exclude higher risk assets Perama, Eastern Dragon, Certej, and Sapes, we estimate that ELD is trading at 0.77x NAV, at an 8% discount to the group. If we further exclude the Kisladag expansion and Skouries (a severe outcome) from our analysis, the P/NAV increases to 1.07x, a 27% premium. On a balance of probabilities, there appears to be a clear risk/reward opportunity that we discuss further in this note," he added.

For an analyst ratings summary and ratings history on Eldorado Gold Corp click here. For more ratings news on Eldorado Gold Corp click here.

Shares of Eldorado Gold Corp closed at $5.78 yesterday.

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