UPDATE: Societe Generale Upgrades Iamgold Corporation to Hold; Bad News Reflected in Price
Societe Generale upgraded Iamgold Corporation (NYSE: IAG) from Sell to Hold.
Societe Generale noted, "The stock has breached our previous price target (C$10.40) and, in our view, now looks oversold. The c.40% collapse in the share price over the last 12 weeks is linked to two key news events. First the company's downgrade of 2013 forecast gold output announced in mid-November 2012 and second, to the guidance provided mid-January for a sharp increase in unit cash costs in 2013 (+30% yoy). Accounting for these negative impacts in our valuation, our price target drops by 9% to C$9.50/sh."
Iamgold Corporation closed at $8.49 on Tuesday.
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