Deutsche Banks initiates coverage of Polymetal at 'hold'

Deutsche Bank initiated coverage of Polymetal on Tuesday with a ‘hold’ rating and 1,200p price target.

The bank noted that Polymetal is a well-established gold and silver producer with a portfolio of eight producing assets and three near-term greenfield projects in Russia and Kazakhstan.

"Polymetal has one of the best growth pipelines versus peers (Nezhda, Prognoz, and Veduga) with gold equivalent production expected to increase around 16% by 2025 (over 2021)," DB said.

"The company has a robust shareholder returns policy which, on our estimates, translates to an average 5% dividend yield over the next five years."

Deutsche also pointed out that Polymetal has the highest ESG rating in the precious metals space, which positions it well versus peers.

"However, we believe the stock is fully valued," it said, hence the 'hold' recommendation.

At 1310 BST, the shares were up 1.4% at 1,288.14p.