Market Overview

UPDATE: Bank of America Downgrades Gold Fields Limited to Neutral Following Unbundling, New Plans

Share:
Related GFI
Mid-Afternoon Market Update: Juno Therapeutics Rises After JCAR015 Phase 2 Rocket Trial Resumption; Avinger Shares Tumble
Glistening Gold: JPMorgan Upgrades Harmony Gold, Gold Fields; Downgrades DRDGOLD
Gold 101 - Lesson 1 (Seeking Alpha)

Bank of America downgraded Gold Fields Limited (NYSE: GFI) from Buy to Neutral with a $10.70 price objective.

Bank of America commented, "After incorporating the effects of unbundling KDC and Beatrix and building in the revised production plans into our model, we downgrade Gold Fields to Neutral and reduce our price objective to ZAR94 from ZAR131. At current gold prices, KDC and Beatrix were making material contributions to both earnings and cash flow, the exclusion of which has had a significant impact on our valuation of GFI. The stock is trading on a P/NPV of 0.97x which is a 28% premium to the SA sector average (0.76x), but at the lower end of valuations of global peers, which are trading between 1.0x and 1.4x."

Gold Fields Limited closed at $12.02 on Thursday.

Latest Ratings for GFI

DateFirmActionFromTo
Jul 2016JP MorganUpgradesUnderweightNeutral
Jun 2016RBC CapitalUpgradesSector PerformOutperform
Mar 2016Goldman SachsDowngradesNeutralSell

View More Analyst Ratings for GFI
View the Latest Analyst Ratings

Posted-In: Bank of AmericaAnalyst Color Downgrades Analyst Ratings

 

Related Articles (GFI)

View Comments and Join the Discussion!