Deutsche Bank Upgrades AngloGold Ashanti (AU) to Buy

Deutsche Bank upgraded AngloGold Ashanti (NYSE: AU) from Hold to Buy with a price target of ZAR 170 (from ZAR 175).

Analyst Patrick Mann said, "AngloGold is currently oversold having almost halved since September. Operational results are good (3Q production is up 8% and costs are down 10%) and, while net debt is too high, there are no immediate covenant or liquidity issues. AngloGold's plan to potentially sell an operating asset will unlock value for two reasons: first, a sale at NPV when the share is at a 40% discount to peers is immediately accretive and, second, proceeds will allay balance sheet concerns and the share will re-rate. We upgrade to a Buy after the recent share price weakness and with a view that AngloGold has a viable plan to reduce gearing without tapping capital markets."

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

Shares of AngloGold Ashanti closed at $8.27 yesterday.

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