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UPDATE: Dundee Upgrades Agnico-Eagle Mines

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On Thursday, Dundee upgraded shares of Agnico-Eagle Mines (NYSE: AEM) from Neutral to Buy and lowered the price target from C$42 to C$40 or from $38.09 to $36.28.

Analyst Josh Wolfson's upgrade is based on:

  • Low expected returns and modest identified opportunities for upside.
  • Tempered enthusiasm regarding the financial merits of acquiring Malartic.
  • Agnico's financial outlook has “improved.”

Wolfson's analysis indicates an acquisition of Malartic would provide “a modest positive impact, but the expected return on capital issued of $1.66B is low.”

“Pre-released 1Q operating results suggest operating momentum beyond strong Meadowbank results, and we now have greater conviction Agnico may seek to increase its guidance over the next 1-2 quarters,” said the analyst.

The stock is down 0.6 percent to $28.31 in Thursday's trading.

Latest Ratings for AEM

DateFirmActionFromTo
Oct 2020BMO CapitalMaintainsOutperform
Oct 2020BarclaysDowngradesOverweightEqual-Weight
Jul 2020ScotiaBankUpgradesSector PerformSector Outperform

View More Analyst Ratings for AEM
View the Latest Analyst Ratings

 

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Latest Ratings

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HYMCBMO CapitalInitiates Coverage On
DEMorgan StanleyMaintains335.0
SBNYRaymond JamesMaintains138.0
CORTHC Wainwright & Co.Maintains32.0
CYBBFCitigroupDowngrades
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