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A Look at Recent Ratings Changes for Yamana Gold

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Analysts’ recommendations

As of September 13, 2016, Yamana (AUY) was trading at $4.5 per share. Now, let’s look at Wall Street analysts’ recommendations and target prices for AUY over the next year.

About 43% of analysts covering AUY have given it “buy” recommendations, according to Bloomberg. About 43% have issued “hold” recommendations, and only 14% have issued “sell” recommendations on the stock. Over the years, we’ve seen the company’s share price move in line with analysts’ recommendations.

The consensus target price for Yamana now stands at $6.4. Its highest target price of $7 comes from BMO Capital Markets and RBC Capital Markets. Goldman Sachs (GS) has the lowest target price for the stock at $4.8. Yamana’s target price has seen an upward revision of 112% since the start of 2016.

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This is in keeping with the stock’s strong share price performance since the start of the year as gold prices have remained high. Yamana’s peers (SGDM) (GDX) such as Kinross Gold (KGC), Barrick Gold (ABX), and Coeur Mining (CDE) have also seen strong stock performances, while Goldcorp (GG) and Eldorado Gold (EGO) have underperformed their peers.

Rating changes

Credit Suisse (CS) cut its target price for Yamana Gold from $6.5 to $6.25 on September 7, 2016, while maintaining its “outperform” rating. In July, Credit Suisse provided rationale for its “outperform” rating, saying, “We rate Yamana as Outperform due to its above average gold price leverage and our positive gold price outlook, potential balance sheet deleveraging and associated re-rating, potential for portfolio optimization and exploration potential at Malartic and Chapada.”

Canaccord Genuity, on the other hand, increased Yamana’s target price from 10 Canadian dollars to 10.5 Canadian dollars on September 9.

On August 3, RBC Capital Markets cut its target price for Yamana from 9.8 Canadian dollars to 9.15 Canadian dollars.

In the next article, we’ll see what analysts are estimating for Yamana’s revenue and earnings going forward.

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