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Deutsche Bank Upgrades Gold Fields (GFI), AngloGold (AU) to Buy

April 17, 2013 7:21 AM EDT Send to a Friend
Get Alerts GFI Hot Sheet
Price: $4.23 +2.92%

Rating Summary:
    1 Buy, 8 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 10 | Down: 9 | New: 0
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Deutsche Bank upgraded Gold Fields (NYSE: GFI) and AngloGold (NYSE: AU) from Hold to Buy Wednesday, saying weakness from gold prices presents a buying opportunity.

"In significant and swift moves, gold has decoupled from fundamental drivers, with disappointing US macro data and falling US 10-year Treasury yields failing to stem the price decline. The SA-listed miners have seen share prices tumble in response and we now see significant upside potential to fair value. As such, we turn Buyers of the sector, upgrading AngloGold and Gold Fields to Buy; and reiterate Buy on Harmony and Sibanye. Factoring in spot Rand gold to our forecasts shows that downside to NPV is limited on average, and whilst the stocks look more expensive on spot (FY14e 25x), we believe the miners will now prioritise cost and capex cuts to protect FCF."

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 $6.38 yesterday.




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