UPDATE: Morgan Stanley Downgrades Eldorado Gold Corp. to Equal-Weight, Lowers PT as Political Risk Creates Headwinds Despite Long-Term Growth Potential

In a report published Tuesday, Morgan Stanley analyst Brad Humphrey downgraded the rating on Eldorado Gold Corp. EGO from Overweight to Equal-Weight, and lowered the price target from $8.00 to $7.70. In the report, Morgan Stanley noted, “Eldorado has a notable track record of navigating through regions that have historically been considered challenging or hostile to foreign investment and/or mining (i.e., Turkey and China), which should provide some comfort to its relatively recent push into Greece. That said, we see the company's above average political risk profile more than offsetting its track record and low operating costs given the current market's limited appetite for risk, as a result we remain cautious in the medium term. We will continue to monitor sentiment towards political risk, as we view Eldorado's management track record, low operating costs and flexible project pipeline as key attributes.” Eldorado Gold Corp. closed on Monday at $6.05.