UPDATE: Deutsche Bank Downgrades Barrick Gold Corporation to Hold on More Cautious Sector View

In a report published Monday, Deutsche Bank analyst Jorge Beristain downgraded the rating on Barrick Gold Corporation ABX from Buy to Hold, and lowered the price target from $40.00 to $22.50. In the report, Beristain noted, “Despite preliminary injunctions in Chile issued (pending a full hearing) halting construction activities on the Chilean side of $8.5bn Pascua-Lama project, construction activities in Argentina (where majority of infrastructure is located) remains ongoing and unaffected. Thereafter, other projects could provide additional opportunities for growth. However, given the current challenging environment, Barrick has no plans to build any new mines. The company has also initiated a global portfolio optimization process wherein it plans to divest it non-core assets including Barrick Energy. Given our more cautious view on the gold sector, we are downgrading Barrick to Hold from Buy given the company's larger debt position, high capex commitments over the next few years, more limited near-term cash flow generation and increasing probability of an equity issuance should funding gap emerge.” Barrick Gold Corporation closed on Friday at $18.17.