Market Overview

Citigroup: Mali Bad Short Term and Long Term

Citigroup has published a research report on Randgold Resources (NASDAQ: GOLD) noting that Mali is bad short term and long term.

In the report, Citigroup writes, "In the longer term, we may have to assess whether the 1.7x P/NPV ratio which we use for our target price on Randgold is warranted. At the moment we only use 1.15x for Centamin (CEY.L; £0.78; 1), because of the Egyptian political situation at present. With both the Ivory Coast and Mali now potentially unstable, and with a key part of Randgold's future being in the DRC (albeit with a very good asset), we may have to review our key bull-point on Randgold, namely that its diversification across a number of African countries reduces its overall African risk."

Citigroup maintains its Buy rating on Randgold, which closed yesterday $103.40.

Posted-In: Citigroup MaliAnalyst Color Reiteration Pre-Market Outlook Analyst Ratings

 

Most Popular

Related Articles (GOLD)

Around the Web, We're Loving...

Partner Network

Get Benzinga's News Delivered Free