After facing years of permitting delays and other obstacles in Greece, Eldorado Gold Corp. finally announced a suspension of most of its Greek activities on Monday night. The stock plunged 19 per cent on Tuesday.

Analysts responded with a wave of target price cuts. TD Securities analyst Steven Green was one of them, but he also upgraded the stock to buy from hold and said this pullback is a buying opportunity.

“We believe that the risk/reward has now shifted in Eldorado’s favour,” he added in a note.

Even if one assumes the Greek assets are worth zero, Green thinks the stock represents great value. By his numbers, it is trading at 0.7 times net asset value without any contribution from Greece, below the sector average of 0.96 times. With Greece, he said it is currently trading at just 0.49 times.

And despite the recent setbacks, he does think Vancouver-based Eldorado will ultimately build success in Greece.

‘We believe that economic realities will compel the ministry of environment to work with Eldorado and foster a more attractive environment for investment,” Green said.

“In addition, the courts have consistently backed the validity of Eldorado’s permits and approvals, which we suspect to continue.”

He cut his target price to US$3.75 a share, down from US$4.50. His overall valuation dropped as he increased the discount rate on the Greek assets to eight per cent (from seven per cent) and assumed first production from the Greece-based Skouries project will happen in 2018. He previously thought it would be mid-2017.