Analysts Remain Bullish on Alamos Gold (AGI) After Turkish Assets Deal

Alamos Gold Inc. (NYSE:AGI) is one of the 11 Best Gold Stocks to Buy According to Hedge Funds. On September 15, Jefferies increased its price target on Alamos Gold Inc. (NYSE:AGI) from $38 to $39 while keeping a Buy rating. This update comes after the company announced its agreement to sell its Turkish assets for $470 million.

The payment will be made to Alamos Gold Inc. (NYSE:AGI) in parts. The company will receive $160 million at closing, which is expected in the fourth quarter of 2025. Alamos Gold Inc. (NYSE:AGI) will receive another $160 million one year after closing, and finally $150 million two years after closing.

Jefferies highlighted that these payments will be guaranteed by international financial institutions, which adds security to this deal. The research firm sees this agreement as very favorable because it significantly surpasses the consensus valuation of $273 million for the assets. It is also much higher than Jefferies’ own small valuation of $19 million.

On September 16, BMO Capital also raised its price target on Alamos Gold Inc. (NYSE:AGI) from C$48 to C$51 following this announcement.

Overall, analysts remain bullish on Alamos Gold Inc. (NYSE:AGI) and have a consensus Buy rating on the stock. As of October 10, the 12-month median price target set by analysts is $40.15, which indicates a potential upside of 21.49% from current levels.

Alamos Gold Inc. (NYSE:AGI) is a Canadian intermediate gold-producing company with operations in North America.

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Disclosure: None. This article is originally published at Insider Monkey.