Deutsche Bank Downgrades Goldcorp (GG) to Sell

Deutsche Bank downgraded Goldcorp (NYSE: GG) from Hold to Sell with a price target of $13.50 (from $15.00). The change follows the release of disappointing Q4 results.

Analyst Jorge Beristain said, "Headline loss of $5.14/sh was impacted by a $3.9bn ($4.69/sh) after-tax impairment charge and a further $0.46/sh in FX adjustments, inventory write-downs and equity losses. Goldcorp has also reduced its 2016 dividend to 8cps (vs 42cps in 2015) paid quarterly (prior monthly). Goldcorp’s production outlook has been heavily reduced with 2.8-3.1m oz guidance in 2016, well below DBe 3.5m oz and 3.45m oz in 2015 mainly related to Cochenour and Éléonore setbacks. On production concerns, we lower our PT to $13.50/sh (from $15/sh) and downgrade to Sell."

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 $15.89 yesterday.

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