UPDATE: Goldman Sachs Sees Opportunity in Eldorado Gold (EGO); Analyst Raises Rating to 'Buy'
Get Alerts EGO Hot Sheet
Rating Summary:
9 Buy, 8 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 11 | New: 13
Join SI Premium – FREE
Goldman Sachs upgraded Eldorado Gold Corp (NYSE: EGO) from Neutral to Buy with a price target of $5, implying upside of 23%. Analyst Andrew Quail sees opportunity given underperformance and growth projects.
"The company’s 87ppt underperformance vs. the GDX YTD is unwarranted, in our view," said Quail. "We believe EGO is well positioned to fund its highly prospective organic growth opportunities, and expect growth projects to drive company-wide adj. FCF improvement of 60% by 2018E. A pro forma analysis based on EGO’s expectations suggests that if the $900mn of pending China asset sales close in 2H16 (per guidance), it will likely have the only net cash balance sheet across our gold coverage. We raise our target multiple to 10.5x (from 9x) to better reflect growth prospects and capital allocation outlook."
Discussing catalysts, the analyst said, "We believe EGO shares are likely to react favorably to updates on key organic growth projects at its investor day in September. We also flag the potential for the miner to reinstate its dividend in early 2017."
For an analyst ratings summary and ratings history on Eldorado Gold Corp click here. For more ratings news on Eldorado Gold Corp click here.
Shares of Eldorado Gold Corp closed at $4.05 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Evercore ISI Upgrades First Solar (FSLR) to Outperform
- Invesco (IVZ) PT Lowered to $17 at BMO Capital
- AGNC Investment Corp (AGNC) PT Lowered to $10.25 at Jones Trading
Create E-mail Alert Related Categories
Analyst Comments, Hot Comments, UpgradesRelated Entities
Goldman SachsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!