UPDATE: HSBC Global Research Downgrades Gold Fields Limited to Underweight, Lowers PT Following Q3 EPS Loss Forecast

In a report published Monday, HSBC Global Research analyst Patrick Chidley downgraded the rating on

from Neutral to Underweight, and lowered the price target from $6.20 to $4.30. In the report, HSBC Global Research noted, “We forecast normalised Q3 EPS of ZAR0.27 (USD0.03), vs. Q2 loss of ZAR0.43 (USD0.05) due to higher production of 496koz, up 10% q-o-q at cash costs of USD774/oz, down 10% q-o-q in-line with the company's trading statement. The improved performance is largely due to recovery at Tarkwa from strikes in Q2 and Damang where we expect mining has now focused on the higher grade saddle area. Q3 2013 NCE guidance of USD1,080/oz, down 13% q-o-q implies stronger cash generation, but will likely be off-set by a 3% q-o-q drop in average realised gold price.” Gold Fields Limited closed on Friday at $4.48.