UPDATE: Credit Suisse Upgrades Kinross Gold Corporation to Outperform on Valuation, Sentiment
Credit Suisse upgraded Kinross Gold Corporation (NYSE: KGC) from Neutral to Outperform.
Credit Suisse noted, "With the overhang removed from an impending writedown and clarity achieved on the choice for a 30ktpd mill option at Tasiast we are upgrading our target multiple for KGC to 1.3x P/NAV (from 1.1x), in line with the senior average of 1.3x. KGC also provided clarity on production, costs and capex for 2013 and thus our OpCFa multiple has increased to 18x (from 13x) in-line with KGC's implied reserve life of ~18 years. Our DCF and CF declined by 30% and 20%. … Negative news was expected and the stock has traded off 16% over the past two months likely on the impending negative newsflow. After modelling the results, we believe negative guidance has been adequately priced into the stock."
Kinross Gold Corporation closed at $8.33 on Thursday.
Latest Ratings for KGC
|May 2016||Canaccord Genuity||Upgrades||Hold||Buy|
|May 2016||Goldman Sachs||Upgrades||Sell||Neutral|
|May 2016||Canaccord Genuity||Downgrades||Buy||Hold|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.