(IDEX Online News) – Petra Diamonds shares have risen slightly after Canaccord Genuity reiterated a ‘buy’ rating and raised its target price to 165p from 150p for the stock which is traded in London.

Canaccord was encouraged by Petra’s full year trading figures update released last month which was ahead of its analysts’ expectations.

Total diamond production was 3.7 million carats, compared to the firm’s forecasts of 3.6 million carats. In addition, Petra’s annual sales of 3.45 million carats, beating Canaccord’s forecast of 3.43 million carats.

Meanwhile, Petra reported that its average price per carat was down only 6% compared with expectations of a 10% drop. Canaccord did point out, however, that the firm’s net debt stood at $387.4 million as of June 30, compared to $172.1 million in the same period a year ago.

Petra said it expects diamond production in fiscal year 2017 of 4.6 million carats to 4.8 million carats.

Canaccord said in a note: “With a healthy increase in diamond production, and capital expenditure set to fall significantly, Petra Diamonds is well positioned to capture the benefit of improving production quality (as it mines more run-of-mine ore) and an anticipated gradual recovery in diamond prices.”