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Deutsche Bank Upgrades Gold Fields (GFI) to Hold

May 26, 2015 8:01 AM EDT
Get Alerts GFI Hot Sheet
Price: $14.41 --0%

Rating Summary:
    4 Buy, 7 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 9 | Down: 9 | New: 42
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Deutsche Bank upgraded Gold Fields (NYSE: GFI) from Sell to Hold. The change follows Ghana site visits.

Analyst Patrick Mann said, "We have a more positive view on Ghana (one third of group production) after the 18-21 May 2015 site visit. The grade profile at Tarkwa is better than we had modelled & Damang can lower costs, & fund exploration & capital by switching to contractor mining. Our valuation is up 15% to R40ps (R34ps) & we upgrade to Hold. Our FY15E-17E cash flow forecasts are muted at US$120- 170m p.a. (mid-single digit FCF-yield). We retain our view that South Deep's turnaround remains the key to the Gold Fields investment case. We forecast South Deep to burn through R1bn in FY15. This mine is targeting break-even only by end 2016, dropping longer-term targets for now."

For an analyst ratings summary and ratings history on Gold Fields click here. For more ratings news on Gold Fields click here.

Shares of Gold Fields closed at $3.46 yesterday.



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