UPDATE: Citigroup Upgrades Goldcorp on Opportunity to Buy High Quality Senior Gold Miner with Growth at Reasonable Valuation

In a report published Monday, Citigroup analyst Brian Yu upgraded the rating on Goldcorp GG from Neutral to Buy, but lowered the price target from $29.00 to $28.00. In the report, Citigroup noted, “Goldcorp's shares have traded down 34% YTD which makes sense given the 23% in the gold price to $1,287/oz, in our view. While Citi's commodity team maintains their cautious view on gold near-term we believe that GG presents a nice opportunity relative to the gold mining sector in general based on historical valuation multiples, a realistic and achievable growth profile and quality reserve base. Based on our revised commodity price forecasts we have lowered our EPS estimates for ‘14/'15 to $0.92 / $1.60 from $0.95 / $1.65. As a result we are lowering our target price to $28/sh.” Goldcorp closed on Friday at $24.34.
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Posted In: Analyst ColorUpgradesAnalyst RatingsBrian YuCitigroup
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