Deutsche Bank Upgrades 7 Precious Metals & Mining Stocks

Deutsche Bank upgraded seven companies in the precious metals and mining sector following the continuous improvement enabling greater options. While three companies were upgraded from Hold to Buy, the other four were lifted from Sell to Hold.

Analysts Jorge Beristain and Chris Terry pointed out 12 percent rally in commodity prices in the third quarter and that metals and mining coverage witnessed 5 percent uptick. This enabled the sector to expect improved cash from supported by debt extension and equity issuances.

The brokerage expects the trend to continue in the next few quarters. Therefore, the companies in the sector could get their financial parameters in place after a volatile first half of the current year.

In a note, Beristain said, "Our preference is for companies offering a defensive bias as well as higher quality assets. We recommend investing in non-integrated companies (Steel mini-mills, Aluminum & Specialty Metals) as well as Precious exposure via Newmont, Barrick, Silver Wheaton and Pan American Silver."

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However, the brokerage doesn't expect the pricing to continue its uptick trend unless material supply reductions are effected by producers.

The following stocks are upgraded from Hold to Buy:

Barrick Gold Corp (USA) ABX
Freeport-McMoRan Inc FCX: Target price lifted from $12.00 to $12.50
Pan American Silver Corp. (USA) PAAS: Price objective increased from $14.50 to $20

The following were upgraded from Sell to Hold: