UPDATE: Bank of America Downgrades Gold Fields Limited to Neutral Following Unbundling, New Plans

Bank of America downgraded Gold Fields Limited

from Buy to Neutral with a $10.70 price objective. Bank of America commented, "After incorporating the effects of unbundling KDC and Beatrix and building in the revised production plans into our model, we downgrade Gold Fields to Neutral and reduce our price objective to ZAR94 from ZAR131. At current gold prices, KDC and Beatrix were making material contributions to both earnings and cash flow, the exclusion of which has had a significant impact on our valuation of GFI. The stock is trading on a P/NPV of 0.97x which is a 28% premium to the SA sector average (0.76x), but at the lower end of valuations of global peers, which are trading between 1.0x and 1.4x." Gold Fields Limited closed at $12.02 on Thursday.