SKE Should I Buy
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Skeena Resources Ltd is not a strong buy at this time for a beginner investor with a long-term strategy. While analysts have raised price targets and maintain an Outperform rating, the company's financial performance is weak, with significant negative EPS and net income. Additionally, technical indicators suggest no clear upward momentum, and options data reflects bearish sentiment. Given the lack of strong positive catalysts and the current market conditions, it is advisable to hold off on investing in this stock for now.
The MACD histogram is negative (-0.696) and contracting, indicating weak momentum. RSI_6 is at 22.162, which is neutral and does not suggest a strong buy signal. Moving averages are converging, showing no clear trend. The stock is trading near its support level (S1: 25.766), with resistance levels at R1: 31.69 and R2: 33.521.
Analysts have raised price targets significantly, with CIBC increasing the target to C$58 and Scotiabank to C$44, citing higher gold and copper price forecasts. The company has $121.89 million in cash and cash equivalents, providing some financial stability.
The company reported a FY GAAP EPS of -$1.59 and aims to raise $450 million for the Eskay Creek mine, which could dilute shareholder value. The mining sector is experiencing volatility despite stable gold prices. Options data shows bearish sentiment with a high Option Volume Put-Call Ratio of 2.01.
In Q4 2025, revenue remained at 0 with no YoY growth. Net income improved to -$71.76 million (up 1443.62% YoY), but it is still negative. EPS increased to -0.59 (up 1375% YoY), but remains in the red. Gross margin remains at 0, showing no profitability.
CIBC raised the price target to C$58 from C$44, and Scotiabank raised it to C$44 from C$25.50. Both analysts maintain Outperform ratings, driven by higher gold and copper price forecasts and geopolitical uncertainty.
