UPDATE: Desjardins Capital Markets Upgrades AuRico Gold to Buy on Compelling Risk/Reward

In a report published Monday, Desjardins Capital Markets analyst Adam Melnyk upgraded the rating on AuRico Gold

from Hold to Buy, but slightly lowered the price target from C$8.00 to C$7.50. In the report, Melnyk noted, “We are upgrading our recommendation on AuRico to Buy from Hold due to a compelling risk/reward proposition that is supported by a strong growth profile at Young‐Davidson, cash flow–linked dividend and robust balance sheet. AUQ's strong financial position should support the development of the flagship Young‐Davidson mine, and we do not expect the company to be active in the M&A market over the near to medium term.” AuRico Gold closed on Friday at $4.81.