UPDATE: Stifel Nicolaus Downgrades Barrick Gold on Reduced Short-Term Price Assumptions

In a report published Tuesday, Stifel Nicolaus analyst George Topping downgraded the rating on Barrick Gold ABX from Buy to Hold, and removed the $30.00 price target.

In the report, Stifel Nicolaus noted, “We are reducing our short term gold price assumptions. As Barrick is highly levered to gold prices, due to its high debt (net ~$12B), we are downgrading to a Hold. The risks to the company, should gold prices take longer to recover/decline further, outweigh the potential rewards. We had continued recommending the company as we expect a near term bounce in the gold price. While this may yet happen, recent gold price rallies have been met with increased selling. Also, the $800mm annual dividend is likely to be cut amidst further writedowns in 3Q13. We continue to recommend Goldcorp (GG-N, $23.59, Buy) as a better way to maintain gold exposure.”

Barrick Gold closed on Monday at $13.79.