Raymond James expects big things from Canada's mid-tier gold producers, initiating buy ratings on three of five companies now being covered by the equity research firm.

"We believe the space offers investors an attractive alternative to the senior gold producers," said analyst Forbes Gemmell.

"Despite lacking the liquidity and scale of the seniors, in our view, the emerging mid-tiers have the ability to offer more attractive growth profiles as well as the potential valuation rerating as they move up the production chain."

Mr. Gemmell best bet is Alamos Gold Inc., rated Strong Buy with a $13.30 target price.

"Operational momentum and internal expansion opportunities should drive growth for the next several years. Exploration activity is a key priority moving forward and although its recent foray into Turkey increases its political risk, on an NAV basis this exposure is minor," he wrote.

The analyst is also bullish on B2Gold Corp., which is "trading at developer multiples despite our production forecast for the company to reach 100,000oz next year." Mr. Gammell has an Outperform rating and set a $1.20 target price on the stock.

As for the other three stocks now under Mr. Gammell's watch, San Gold Corp. is also rated Outperform, with a $3.60 target price, Aurizon Mines Ltd. is rated Market Perform with a $6 target price, while Gammon Gold Inc. is rated Market Perform with a $10.30 target price