logo
  Join        Login             Stock Quote

Labrador Iron Ore Royalty Downgraded To 'Sector Performer' By CIBC

 January 16, 2013 02:56 PM


(By Balaseshan) CIBC World Markets Inc. analyst Matthew Gibson downgraded rating of Labrador Iron Ore Royalty Corp. (TSE: LIF) to "Sector Performer" from "Sector Outperformer" while maintaining $40 price target.

Gibson said LIF has significantly outperformed its peers with total returns of 24% since January 2011. Iron ore peers have declined by 42% over the same time period. He still views the stock as a defensive way to play iron ore with a pro forma dividend implying a 6.54% yield.

IOC reported production of 2.5 million tonnes of pellets and 1.4 million tonnes of concentrates, below the analyst's expectations of 2.7 million tonnes and 1.5 million tonnes, respectively. The lower-than-expected results were most likely due to integration of the Phase 1 expansion and the onset of winter conditions.

[Related -Upbeat Forecasts For US Housing Sales In March]

Sales volumes in the quarter came in below Gibson's expectations and could result in downside to Q4 earnings. Sales volumes in Q4 totaled 2.5 million tonnes of pellets and 1.3 million tonnes of concentrate versus his expectations of 2.7 million tonnes and 1.5 million tonnes, respectively.

The analyst believes that stability in iron ore prices will be more beneficial to iron ore developers. Given the recent increase in the share price, he downgraded the stock and maintained his price target.

LIF is trading down 3.14% at $33.29 on Wednesday.

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 imageUpbeat Forecasts For US Housing Sales In March

The Fiscal Times advises that the “the housing market is about to perk up.” One of the reasons for the read on...

article imageHappy Birthday, Moore's Law - Pearls of Wisdom for Investors

As Moore’s Law turns 50, we reflect on technology’s incredible history and limitless read on...

article imageIndex Investing Is Not Inherently Socialistic

How does capital get allocated to the public stock read on...

article imageDon't Let Fear of a 'Grexit' Keep You Out of European Stocks

After nearly three years of extremely weak economic growth, the European Central Bank is finally delivering 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.