August 29, 2018 / 11:05 AM / a month ago

BUZZ-North America gold sector attractive, but not compelling - Citi

** Citigroup remains “neutral” on North America gold sector, says while gold price risk is skewed to the upside, brokerage still struggles to see compelling value

** Brokerage Calls Kestrel Gold, Goldcorp and Barrick Gold “turnaround stories”; Says GG is poised to outperform the sector as it improves operations, execution on projects

** Upgrades Barrick Gold to “neutral” from “sell,” says stock appears to be nearing a bottom and has potential to outperform; Cuts PT by $1 to $12 on ABX, which still implies upside of ~13 pct to stock’s last close

** Citi also cuts PT on Agnico Eagle Mines by $7 to $38 vs median PT of $55, saying does not see upside at the current valuation, which is at a premium to peers

** Adds, though Newmont Mining is de-facto proxy on gold sector for US investors, it does not expect strong outperformance, cuts PT to $36 from $42 vs median PT of $44

** Spot gold was up 0.17 percent at $1,202.91 an ounce; Citi expects prices to be ~8 pct higher by end of 2018 and 14 pct higher in 2019 (Reporting by Amy Caren Daniel in Bengaluru)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below