UPDATE: Dahlman Rose Downgrades Agnico-Eagle Mines to Hold

Dahlman Rose has published a research report on Agnico-Eagle Mines

and has downgraded the company from Buy to Hold based on valuation. In the report, Dahlman Rose writes, "Versus our prior estimates, we believe the company could encounter future headwinds due to cost creep, primarily in regards to capex, at both its brownfield and greenfield expansion projects. We see an increase in capital expenditures, versus our prior assumptions, primarily at Kittila, Pinos Altos, and La India. While we believe the company will be able to steer itself through impending cost creep, and continue to successfully develop its projects, the increase in our capex estimates has nonetheless resulted in a net-negative impact on our NAV. Coupled with the outperformance of shares year-to-date vs. its peer group, we believe the company to be fully-valued at this point. Based on our view of valuation, we are downgrading our rating on shares of AEM to Hold, from our former Buy rating." Agnico-Eagle Mines closed yesterday at $38.58.