(BVN) Compania de Minas - Ratings and Ratios

Compañía de Minas Buenaventura S.A.A. is a Peruvian mining company with a diversified portfolio of polymetallic ores and metals, including gold, silver, lead, zinc, and copper. The companys operations span multiple mining units across Peru, with a mix of wholly-owned and partially-owned assets. Buenaventuras mines are located in various regions, including Caylloma, Castilla, Oyón, Angaraes, and Moquegua, with a total production capacity that positions it as a significant player in the Peruvian mining industry.

In addition to its core mining activities, Buenaventura also produces monohydrate manganese sulphate and operates hydroelectric power plants, further diversifying its revenue streams. The companys long history, dating back to 1953, and its presence in the Peruvian mining sector have likely contributed to its established position and reputation. With its headquarters in Lima, Peru, Buenaventura is well-placed to capitalize on the countrys rich mineral resources.

From a technical analysis perspective, BVNs stock price has been trending upward, with its 20-day, 50-day, and 200-day simple moving averages (SMA) indicating a positive momentum. The stocks last price of $16.94 is above its SMA20 and SMA50, suggesting a short-term bullish trend. The average true range (ATR) of 0.50, equivalent to 2.92%, indicates moderate volatility. Given the current technical setup, a potential price target could be $18.50, representing a 9% increase from the current price.

Fundamentally, Buenaventuras market capitalization of $3.8 billion and a price-to-earnings (P/E) ratio of 9.15 suggest a relatively undervalued stock compared to its peers. The companys return on equity (RoE) of 11.31% indicates a decent level of profitability. Considering the current fundamental data and assuming a stable gold price, we forecast that BVNs stock price could reach $19.50 within the next 12 months, driven by potential increases in gold production and revenue growth from its diversified mining portfolio.

Combining both technical and fundamental analysis, our forecast suggests that BVNs stock price is likely to continue its upward trend, driven by a mix of positive technical indicators and fundamental strengths. As the gold price continues to be a key driver for the companys performance, any sustained increase in gold prices could further boost BVNs stock price, potentially reaching our forecasted target of $19.50.