10:28 AM EDT, 08/20/2024 (MT Newswires) -- Iamgold ( IAG ) 's price target has been increased to $8.50 from $7 while its Sector Perform rating remained unchanged, National Bank of Canada said in a Monday note.

The bank made the price target change as it reviewed the potential "takeout value" of Iamgold ( IAG ) with M&A activity in the precious metals space "heating up" in noting the recent Gold Fields all-cash offer for Osisko Mining (OSK.TO)

"We believe with record-high gold prices being achieved, a robust [free cash flow] outlook for the sector and heightened M&A activity, Iamgold ( IAG ) could fetch a premium to these averages, supporting further upside potential in the share price," National Bank said.

National Bank noted month to date (as of Friday's close), IAMGOLD ( IAG ) was up 23.6% vs. the S&P/TSX Global Gold Index up 2.90%, following a strong Q2 earnings result. But in the bank's opinion, this had more to do with heightened expectations of IAMGOLD ( IAG ) becoming an M&A target as the large, long mine life (and expected low-cost) Cote Gold mine continues to ramp up towards full capacity. National revisited its target multiples to reflect this. The bank is ascribing a 50-50 scenario of IAMGOLD ( IAG ) being acquired in its valuation multiple determination.

Iamgold's ( IAG ) share price was up 1% at last look to $7.05.

Price: 7.03, Change: +0.05, Percent Change: +0.72