Market Overview

UPDATE: Canaccord Genuity Upgrades Alamos Gold as Operational Momentum is Expected to Continue

Benzinga's Top Upgrades
Stocks Hitting 52-Week Highs

In a report published Friday, Canaccord Genuity analyst Rahul Paul upgraded the rating on Alamos Gold (NYSE: AGI) from Hold to Buy, and reiterated the C$20.00 price target.

In the report, Canaccord Genuity noted, “We are upgrading Alamos Gold to BUY from Hold following the release of better than expected Q3/13 results. Alamos currently trades at a premium to the group (0.84x P/NAV vs. the junior producer average of 0.70x), but we believe the premium is justified in light of the attractive low-cost production growth profile and a cash-rich debt-free balance sheet, which should support further cash flow growth and shareholder value creation even in a low gold price environment. In recent times, investors have demonstrated a willingness to pay a premium for quality and lower risk - a trend that we expect to continue over the next 12 months potentially supporting further multiple expansions for defensive stocks like Alamos. In addition, we view 2013 guidance as very conservative in light of very strong year-to-date performance and anticipate that potentially better than expected operating results should help drive further outperformance in the stock price.”

Alamos Gold closed on Thursday at C$16.61.

Latest Ratings for AGI

Aug 2016DesjardinsUpgradesHoldBuy
Jul 2016Bank of AmericaAssumesBuy
Jun 2016Credit SuisseAssumesNeutralOutperform

View More Analyst Ratings for AGI
View the Latest Analyst Ratings

Posted-In: Canaccord Genuity Rahul PaulAnalyst Color Upgrades Analyst Ratings


Related Articles (AGI)

View Comments and Join the Discussion!