logo
  Join        Login             Stock Quote

CIBC Downgrades IAMGOLD (IAG) To 'Sector Performer' Following Q3 Results

 November 15, 2012 10:12 AM
 


(By Balachander) CIBC World Markets Inc. downgraded its rating on shares of IAMGOLD Corp. (NYSE: IAG) to "Sector Performer" from "Sector Outperformer" and reduced price target to US$18 from US$20, following the company's quarterly results.

The brokerage noted that IAMGOLD missed its Q3 expectations on both earnings and production. "The strong H2/12 we had hoped to see is failing to materialize and more significantly, production guidance was reduced for 2013 by 13 percent, reflecting unexpected delays at Westwood and Sadiola," wrote CIBC.

"IAG shares have outperformed in recent months with cash flow multiples recovering to average levels for the sector," CIBC said.

[Related -One Thing Needs To Happen Before Precious Metals Start To Rally Again]

"Faced with a flatter-than-expected growth profile in 2013 and lingering uncertainties at Sadiola, we think it will be difficult

for the stock to garner an above-average multiple."

CIBC thinks the catalysts for 2012 have largely played out and 2013 growth is now lower than expected and carries greater

uncertainty.

Both Rosebel and Essakane appear to be in higher pre-strip phases of mining, with the latter posting the highest quarterly

strip ratio at 4.3 and cash cost at $594/oz, which is attributed to the elevated waste stripping ahead of new ore benches, the brokerage noted.

On the NYSE, IAG shares fell 3.17 percent to trade at $11.60 on Thursday.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageBuffett's Market Indicator Flashes Red, Prepare To Sell

With each passing month, it's becoming evident that the current bull market has slowed from a gallop to a read on...

article imagePBoC joins other major central banks with unconventional monetary policy action

Softer than expected economic growth in China (see discussion) has finally spurred the PBoC into action. read on...

article imageA Buyback Boost?

Are stock buybacks the only thing keeping this bull market read on...

article imageGold Slides On Perfect Storm For Dollar

For all the anticipation surrounding the delivery of the Fed’s statement in the run-up to the September read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.