Deutsche Bank on Americas Metals and Mining: 2Q11 Preview: Cash Flow Mattering More as Risk Rises
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Price: $11.19 --0%
Rating Summary:
9 Buy, 14 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
9 Buy, 14 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Deutsche Bank on Americas Metals and Mining: 2Q11 Preview: Cash Flow Mattering More as Risk Rises
Deutsche analyst says, "Going more defensive – cutting “project”-heavy companies to Hold We are downgrading Goldcorp (NYSE: GG) (on strong performance) and Thompson Creek (NYSE: TC) and Silver Standard (Nasdaq: SSRI) to Hold given their project-heavy outlook is cause for pause in a rising risk environment. We are growing concerned that higher risk premia may start to be applied to long-dated cash flows and especially against a back-drop of rising cost inflation due to labor scarcity and rising equipment and raw material costs leaving scope for cost over-runs. Following a good relative YTD outperformance, Goldcorp’s upside to our revised PT appears more limited vis-àvis underperformers Barrick and Newmont, though its growth trajectory and potential to increase dividends remain key positives."
Deutsche analyst says, "Going more defensive – cutting “project”-heavy companies to Hold We are downgrading Goldcorp (NYSE: GG) (on strong performance) and Thompson Creek (NYSE: TC) and Silver Standard (Nasdaq: SSRI) to Hold given their project-heavy outlook is cause for pause in a rising risk environment. We are growing concerned that higher risk premia may start to be applied to long-dated cash flows and especially against a back-drop of rising cost inflation due to labor scarcity and rising equipment and raw material costs leaving scope for cost over-runs. Following a good relative YTD outperformance, Goldcorp’s upside to our revised PT appears more limited vis-àvis underperformers Barrick and Newmont, though its growth trajectory and potential to increase dividends remain key positives."
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