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TD Securities Upgrades Goldcorp (GG) to Buy

December 21, 2016 7:55 AM EST
Get Alerts GG Hot Sheet
Price: $11.19 --0%

Rating Summary:
    9 Buy, 14 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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TD Securities upgraded Goldcorp (NYSE: GG) from Hold to Buy with a price target of $18.50 (from $20.00). Analyst Greg Barnes noted that shares have underperformed.

"The relative underperformance (+5.7% YTD) is partly due to successful turnaround strategies that have played-out over the past two years at Barrick (+89% YTD) and Newmont (+73% YTD). In our view, the underperformance was also due to investor frustration as they realized that an operational turnaround would take longer than expected. We believe that the turnaround strategies at Barrick and Newmont are now largely complete, whereas at Goldcorp we see the potential for investors to re-engage after several years of disappointment," said Barnes.

The analsyt added, "We generate a 51% return to our target price using a 1.4x NAV multiple and a 7.5x 2018 EBITDA multiple. Our target multiples are slightly lower than the 1.5-1.6x NAV and 8.5x EBITDA multiples we use for Barrick and Newmont."

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

Shares of Goldcorp closed at $12.32 yesterday.



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