UPDATE: Bank of America Upgrades Gold Fields Limited on Improving Outlook

In a report published Monday, Bank of America analyst Avishkar Nagaser upgraded the rating on

from Underperform to Neutral, but lowered the price target from $5.00 to $4.70. In the report, Bank of America noted, “Since the start of September, Gold Fields (GFI) has fallen 20%, compared to the JSE gold index which is down 8%. We believe that the underperformance has factored in the uncertainty surrounding South Deep, with the 3Q13 results highlighting an improved operating performance. We upgrade to Neutral, but lower our PO to ZAR47 from ZAR50 after factoring in the 3Q13 results; updated guidance and the recently completed Yilgarn South acquisition. We await further clarity on the revised South Deep plans which are expected in February 2014. In addition, the ongoing SEC investigation remains somewhat of a headwind. GFI is trading at a P/NPV of 0.82x, in-line with the SA sector average.” Gold Fields Limited closed on Friday at $4.13.