BMO Capital Markets on Thursday reiterated its outperform rating on the shares of Discovery Silver (DSV.TO) while removing the speculative-risk qualifier its previously applied, while raising its price target to C$4.00 from an undisclosed prior level.

"We are off restriction following the closing of Discovery's acquisition of the Porcupine Complex. The deal transforms DSV into a mid-sized gold producer in a tier-1 jurisdiction, with production over 285kozpa. DSV's management team has extensive experience in the Timmins gold camp, which we expect will unlock further upside. At 0.6x NAV, we expect DSV's discount vs. peers will narrow as the company builds an operating track record. Our NAVPS rises 6% to C$4.97/sh, and we increase our target to C$4.00 and remove the Speculative qualifier from our Outperform rating," analyst Kevin O'Halloran wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 2.84, Change: +0.06, Percent Change: +2.16