12:08 PM EDT, 04/09/2024 (MT Newswires) -- Alamos Gold's ( AGI ) acquisition of Argonaut is compelling and likely to seen by investors as highly favorable in a bullish gold price environment, BofA Securities said in a note Tuesday.

The brokerage estimates July 1 as the closing date for Alamos Gold's ( AGI ) acquisition of Argonaut, which is expected to be accretive on near-term earnings, cash flow, and operational metrics, according to the note.

BofA said it is increasing its 2024, 2025, and 2026 earnings per share estimates for the company to $0.93, $1.04 and $1.20 from $0.59, $0.69, and $0.68, respectively, incorporating the acquisition and the effects of higher metal prices.

"AGI is a stand-out in the mid-tier/intermediate space given growth outlook, high quality asset base, low geopolitical risk," BofA said.

BofA upgraded its rating on Alamos Gold ( AGI ) stock to buy from neutral and raised the price target to $20 from $15.75.

Price: 15.08, Change: +0.22, Percent Change: +1.48