UPDATE: RBC Capital Upgrades New Gold (NGD) to Sector Perform

(Updated - September 8, 2021 5:33 AM EDT)

RBC Capital analyst Josh Wolfson upgraded New Gold (NYSE: NGD) from Underperform to Sector Perform with a price target of $1.50 (from $1.75).

The analyst comments "In this note we assess the potential materiality and risks associated with NGD's recent disclosures of negative grade reconciliation at its Rainy River mine. Despite incomplete information available, we calculate a reasonable probability of improved operating performance and favourable net free cash flow generation materializing in 2H21+. We are upgrading our rating to Sector Perform, which better reflects the company's risk profile in the context of NGD's now reduced valuation."

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 $1.23 yesterday.

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