UPDATE: HSBC Global Research Upgrades Goldcorp to Overweight, Lowers PT on Positive Q3 EPS Forecast, Expected Price Declines

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

from Neutral to Overweight, but lowered the price target from $31.40 to $31.10. In the report, HSBC Global Research noted, “We forecast Q3 adjusted EPS of USD0.19, up 32% q-o-q, as impact of lower gold, silver and other metals prices are offset by higher production and lower operating costs. We expect costs, on a per ounce basis at Goldcorp, to begin declining sequentially helped by higher production and the impact of cost cutting measures implemented over the last 2 quarters. We forecast Goldcorp's total by-product cash costs to be USD585/oz, driven down 10% from USD646/oz in Q2 mainly by lower estimated unit costs at Penasquito, Red Lake, Los Filos and Pueblo Viejo. Potential upwards price revisions for provisionally priced concentrate priced at the end of Q2 may result in slightly better price received and/or reported average cash costs.” Goldcorp closed on Friday at $24.35.