UPDATE: Credit Suisse Downgrades IAMGOLD to Underperform on Lower Production Forecasts
Credit Suisse reduced its rating on IAMGOLD (NYSE: IAG) from Neutral to Underperform; its price target was reduced from $17 to $12.
Credit Suisse commented, "We believe that IAG's upcoming catalysts are risked to the downside and we do not see any other major positive catalysts on the horizon. Early in 2013, IAG is expected to provide production, costs and capital guidance which we expect to have further negative implications. Information on which assets, and the extent to which they could be impacted, was insufficient to model. At this stage we take a 'wait and see' approach. We have revised our P/NAV TP multiple from 1.1X to 1.0X to reflect the reduced growth profile in 2013-2014 and execution risk. We believe IAMgold will underperform its peers as investors seek more operationally consistent intermediate gold stocks such as EGO, AEM, AUY and DGC while IAG resolves its issues."
IAMGOLD closed at $11.97 on Wednesday.
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