UPDATE: Bank of America Downgrades Randgold Resources to Neutral on Weak Q3
Bank of America lowered its rating on Randgold Resources (NASDAQ: GOLD) from Buy to Neutral.
Bank of America commented, "Post a disappointing Q3, we lower FY2012E EPS -27%, to US$4.39/sh. We also take a more conservative view on 2013E production / earnings ramp-up. 2013E EPS -16%, to US$6.30/sh. NPV down to GBp4442. Randgold is a premium stock with a long history of creating value for shareholders. However, in our view, after a near 70% rally from the May lows to their recent peak, shares are priced for perfect execution and won't outperform while consensus estimates are downgraded. We also contemplate headline risk related to DRC mining code revisions and unrest in Mali."
Randgold Resources closed at $115.67 on Wednesday.
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