IAG) shares lost 5.75% Friday after the company received a Wall Street double downgrade in the middle of a bull market for gold.
Michael Jalonen downgraded Iamgold from Buy to Underperform and cut the price target from $6.25 to $4.50.” data-reactid=”20″>The Iamgold Analyst: Bank of America analyst Michael Jalonen downgraded Iamgold from Buy to Underperform and cut the price target from $6.25 to $4.50.
Iamgold cut its 2020 gold output guidance from a previous range of between 685,000 and 740,000 ounces to a new range of between 645,000 and 700,000 ounces.
“The lower rating and PO are based on a reduction in the target multiple from 1.0x to 0.75x, a function of the Westwood Technical Report (gold reserves lowered 48% to 618,000 ozs) and 2021 guidance remaining under review due to potential COVID-19 impacts,” Jalonen said in the downgrade note.
The analyst significantly reduced his target output for Westwood and cut the mine life estimate for the property to eight years.
View more earnings on IAG” data-reactid=”29″>View more earnings on IAG
Looking ahead to 2021, Iamgold is targeting gold production of between 760,000-840,000 ounces, but that guidance is reportedly still under review.
KGC), Barrick Gold Corp (NYSE: GOLD) and Newmont Corporation (NYSE: NEM) have all gained more than 50% so far this year.
Gold At K? Silver? BofA Raises Metal Price Targets ” data-reactid=”34″>Gold At K? Silver? BofA Raises Metal Price Targets
Latest Ratings for IAG
| Date | Firm | Action | From | To |
|---|---|---|---|---|
| May 2020 | BMO Capital | Maintains | Market Perform | |
| May 2020 | Canaccord Genuity | Upgrades | Hold | Buy |
| Dec 2019 | BMO Capital | Maintains | Outperform |
View Article Origin Here
