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How Are Analysts Rating Coeur Mining?

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Market sentiment for Coeur Mining

Coeur Mining (CDE) is a high-cost producer. While it has shown impressive cost-cutting in 2015, it’s still producing at higher costs than many of its peers (SIL) (RING).

Higher costs make it highly leveraged to gold and silver prices compared to other low-cost producers such as Barrick Gold (ABX) and Newmont Mining (NEM). Another factor that’s impacting the sentiment for the stock is its recent plan to issue additional equity.

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Analyst recommendations

The market consensus rating for Coeur Mining stock is a “buy” from 60.0% of analysts. About 40.0% are recommending a “hold.”

The average target price for CDE is $13.33 compared to its current market price of $11.24. That implies a potential upside of 18.6%. You should note that analysts have revised Coeur’s target price by 208.0% in the past year to reflect its high leverage to precious metal prices.

Raymond James cut its target price from $16.50 to $11.75 on December 22, 2016. Deutsche cut its target price from $11 to $10.50.

Canaccord Genuity initiated Coeur stock on October 25, 2016, with a “buy” rating and a target price of $13.

On October 3, 2016, Deutsche Bank (DB) upgraded Coeur Mining from a “sell” to a “hold.” The firm also increased its target price from $7.50 to $11.

CIBC (Canadian Imperial Bank of Commerce) also upgraded Coeur stock from “sector underperform” to “sector perform” on August 29, 2016. According to CIBC analyst Cosmos Chiu, “The thesis for the Coeur Mining story has changed.” Its falling cost profile and strengthening balance sheet should benefit the stock going forward. CIBC also raised the stock’s target price from $9.50 to $14.50.

In May 2016, BMO Capital Markets Equity Research upgraded Coeur Mining to “outperform” from “market perform.” In the same report, it also upgraded Yamana Gold (AUY), Silver Wheaton (SLW), Pan American Silver (PAAS), and Detour Gold (DRGDF).

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