Market Overview

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

Related GFI
U.S. Stocks Rise; Hain Celestial Shares Surge On Upbeat Results
Markets Edge Lower; American Eagle Profit Beats Street View
Signs of the Times: 'We Buy Gold' (Fox Business)

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.

Posted-In: Bank of AmericaAnalyst Color Downgrades Analyst Ratings

 

Related Articles (GFI)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters