Here’s What Could Be Driving the Rating Changes for South African Gold Miners



AngloGold Ashanti’s rating changes

AngloGold Ashanti (AU) saw its last recommendation change in May 2017, when CIBC (Canadian Imperial Bank of Commerce) downgraded the stock to a “sector perform” rating from a “sector outperform” rating. This downgrade was mainly due to the company’s weaker-than-expected results.

RBC Capital Markets also downgraded Anglo’s stock to “sector perform” from “outperform” on April 24, 2017. The firm maintained that this was mainly a valuation call.

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Rating changes for Sibanye

Morgan Stanley upgraded Sibanye Gold (SBGL) from “equal weight” to “overweight” on October 9, 2017. Before this, Sibanye’s last rating change was in January. On January 21, 2017, HSBC Holdings upgraded the stock to a “buy.”

Other South African gold miners

Deutsche Bank (DB) upgraded Harmony Gold’s (HMY) stock from “sell” to “hold” on August 18, 2017. The firm’s analyst, Patrick Mann, stated that the risk-reward ratio looked balanced, as HMY hedges support cash flow and earnings. In March 2017, DB lowered Harmony from “hold” to “sell.”

On October 9, 2017, Morgan Stanley downgraded Gold Fields (GFI) from “equal weight” to “underweight.” On June 29, 2017, Goldman Sachs (GS) had upgraded GFI from “sell” to “neutral.”

Notably, HSBC downgraded Gold Fields (GFI) to a “sell” rating from “moderate sell” on April 27, 2017.

Keep checking with the Market Realist’s Precious Metal Mining page as we update these gold mining companies’ (GDX) (JNUG) latest results.


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