The Globe and Mail reports in its Thursday edition that Canaccord Genuity analyst Dalton Baretto commenced new coverage on Nevsun Resources with a "buy" rating and a target price of $5. The Globe's David Leeder writes in the Eye On Equities column that analysts on average target the shares at $5.91. Mr. Baretto says in a note: "In our view, the planned transition to primary zinc production at NSU's flagship Bisha mine couldn't have been more timely, while the recent acquisition of the Timok project in Serbia along with identified exploration targets in the Bisha district provide quality longer-term optionality. In addition, NSU continues to maintain an unlevered balance sheet, along with a healthy cash balance, and an attractive dividend for now. We acknowledge the geopolitical risk surrounding Bisha. However, we note that the Eritrean government has fulfilled all obligations to date. We also acknowledge the uncertainty surrounding the valuation of the Timok project given the early development stage. As such, we use a 10-per-cent discount rate in our NAV estimate for NSU, versus 8 per cent for almost all of its peers. NSU appears to be expensive relative to its peers on a near-term basis, but in line on NAV."