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Analysts’ Reactions to Kinross Gold’s 3Q17 Results

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Nov. 15 2017, Updated 10:31 a.m. ET

Kinross Gold’s analyst ratings

Currently, 18 analysts are covering Kinross Gold (KGC), according to the consensus compiled by Thomson Reuters. A majority (or 56%) of analysts recommend a “hold” for the stock, while 44% have given it a “buy” rating. There were no “sell” ratings for the stock. The consensus target price for the stock is $5.30, which implies an upside potential of 23.3%.

Peers (GDX) (JNUG) Iamgold (IAG), Newmont Mining (NEM), Agnico Eagle Mines (AEM), and Coeur Mining (CDE) have consensus average target prices of $7.92, $42.03, $55.93, and $11.69, respectively.

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Macquarie’s upgrade

On November 10, 2017, Macquarie upgraded Kinross Gold from “neutral” to “outperform.” It slightly reduced the stock’s target price from $4.40 to $4.37. The upgrade by Michael Siperco, a Macquarie analyst, reflects the improving core operations for the company, increased merger and acquisition opportunities, and a strong organic growth pipeline. Macquarie cited an upside from Kinross’s Nevada operations as a reason for becoming more optimistic on the stock.

Other rating changes

The latest upgrade for KGC stock follows other upgrades. On September 1, 2017, Credit Suisse (CS) upgraded KGC stock from “sell” to “hold.” The upgrade was mainly due to its positive stance on gold prices. After Kinross announced it would proceed with two new projects in September 2017, Credit Suisse analyst Anita Soni said that Kinross should be able to maintain production at 2.5 million–3.0 million ounces from 2018 to 2022. The firm also thinks these projects could help the company mitigate the impact of the shorter mine lives of Chirano, Kupol, and Fort Knox.

Previously, in May 2017, BMO Capital Markets upgraded the stock from “market perform” to “buy.” The firm cited the company’s steady stage of execution and its relative valuation as the factors supporting this positive view.

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