Petra Diamonds, the junior diamond company that operates diamond mines in Tanzania and South Africa was assigned a consensus recommendation of "Buy" from the ten brokerages that are covering the company, MarketBeat Ratings reported. The Tech Know Bits website reported that four investment analysts have rated Petra's stock with a hold rating and that six had assigned a buy rating to the company.
PDL has been the topic of several research analyst reports, Tech Know Bits wrote. The Berenberg Bank Had upgraded shares of Petra Diamonds to a "buy"rating and raised their target price for the stock from GBX 23 ($0.30) to GBX 25 ($0.33) this week. Other investors followed suit or remained neutral.
This development may bode well for other junior diamond miners. The stock values of most juniors have taken severe beatings during the past months, following reports on lower earnings that were mainly caused by weak prices of their small rough diamond productions.
Petra has been fortunate in particular during the past months, as it, at regular intervals, found a number of 100+ carat stones, that significantly improved the company's performance, in spite of its difficulties.