CIBC Downgrades New Gold (NGD) to Neutral

CIBC analyst Anita Soni downgraded New Gold (NYSE: NGD) from Outperformer to Neutral with a price target of $2.25 (from $2.60).

The analyst comments "We are downgrading New Gold from Outperformer to Neutral and reducing our price target from $2.60 to $2.25 on the back of the fatality at its New Afton mine announced this morning. We have revised our CF and NAV multiples lower from 4.0x to 3.0x and 1.0x to 0.9x, respectively, to reflect the uncertainty around the incident and potential implications to one of the company’s two key assets."

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

Shares of New Gold closed at $2.07 yesterday.

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