UPDATE: HSBC Global Research Downgrades Barrick Gold Corporation to Neutral, Lowers PT on Fair Valuation

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

from Overweight to Neutral, and lowered the price target from $21.10 to $19.60. In the report, HSBC Global Research noted, “On October 31, Barrick announced a USD3bn share issue in a bought deal. The cash raised is expected to be used mainly for early debt repayment. With the deal priced at USD18.35/share, the timing is a little disappointing. However, while we are modestly bullish on the outlook for gold, threats remain and there could be further downside. This deal shores up the balance sheet making Barrick better able to weather the next storm in gold. Barrick's Q3 earnings were strong at USD0.58/share (adjusted), reflecting improving costs and solid production.” Barrick Gold Corporation closed on Wednesday at $18.34.