UPDATE: HSBC Upgrades IAMGOLD Following Positive Adjusted EPS Forecast

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

from Neutral to Overweight, and reiterated the $6.20 price target. In the report, HSBC Global Research noted, “We forecast adjusted EPS of USD0.07, flat q-o-q, as higher estimated attributable gold sales (208koz vs. 201koz in Q2) offset sequentially lower gold prices and higher operating costs. We expect Q3 commercial production and sales of 208koz (238koz including pre-commercial), vs. sales of 201koz in Q2 (production of 214koz), reflecting our assumption of a much greater proportion of a non-commercial Westwood ore feeding the Doyon mill during the quarter. The Westwood mine appears to be on track to produce the targeted 130-150koz, although commercial production, which is dependent on achieving and sustaining 60% of designed underground mining rate, likely in October.” IAMGOLD Corp. closed on Friday at $4.76.