raymond james - strong buy target c$1.10

An excerpt from the latest research report on Equinox from Canadian brokers Raymond James (referred to in w/e Australian recently)

OVERVIEW
We are initiating coverage of Equinox Minerals Limited (EQN-T)
with a STRONG BUY rating and a 6-12 month target price of
C$1.10. The current share price, in our view, does not reflect the
potential value of the 125,000 tonnes of copper per year project
located in Zambia. Assuming a long-term copper price of US$1.00
per pound and an 8% real discount rate, we estimate the shares to be
worth C$2.77 before share dilution from the required equity
financing. Typically the feasibility stage projects ahead of financing
trade at 0.30 to 0.50 times net asset value. For example Corriente
(CTQ-T, OUTPERFORM) is trading at 0.53 times. Equinox shares,
however, trade at a P/NAV multiple of 0.17 times versus the peer
group of copper equities at 0.79 times. We conservatively apply 0.40
times multiple to our NAV estimate of C$2.77 per share to calculate
a C$1.10 target price.