UPDATE: BMO Capital Markets Downgrades AuRico Gold to Market Perform Following Sale Completion
BMO Capital Markets reduced its rating on AuRico Gold (NYSE: AUQ) from Outperform to Market Perform while raising its price target from $9 to $9.50.
BMO Capital Markets commented, "The company now trades at a premium to the BMO Research mid-tier gold stocks. The recent sale of Ocampo and the application of the proceeds to reduce debt and buy back shares de-risks the company profile, while increasing the importance of a successful ramp-up of Young-Davidson. … BMO Research expects that the surplus cash may be used in future to redeem the US$167M convertible notes and possibly to establish a dividend policy."
AuRico Gold closed at $8.29 on Monday.
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Tags: BMO Capital Markets