UPDATE: Credit Suisse Downgrades Barrick Gold on Multiple Risk Factors
In a report published Wednesday, Credit Suisse analyst Anita Soni downgraded the rating on Barrick Gold (NYSE: ABX) from Outperform to Neutral, and lowered the price target from $36.00 to $20.00.
In the report, Credit Suisse noted, “Barrick is downgraded due to the confluence of a number of factors (gold price uncertainty, PL uncertainty, debt, potential write-downs), which in isolation would likely have been weathered, but in combination reduces the risk/reward profile for the company. We are reducing our rating until the company provides clarity on the path for Pascua and for handling asset sales and its financial leverage. We expect that ABX will provide some clarity on Pascua before Q3 results in late October.”
Barrick Gold closed on Tuesday at $16.11.
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