Analyst Upgrades: Barrick Gold, Kinross Gold, Yamana Gold

Analysts upwardly revised their ratings and price targets on Barrick Gold Corporation (USA) (ABX), Kinross Gold Corporation (USA) (KGC), and Yamana Gold Inc. (USA) (AUY)

May 11, 2016 at 9:48 AM
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Analysts are weighing in on gold stocks Barrick Gold Corporation (USA) (NYSE:ABX)Kinross Gold Corporation (USA) (NYSE:KGC), and Yamana Gold Inc. (USA) (NYSE:AUY). Here's a quick roundup of today's bullish brokerage notes on ABX, KGC, and AUY.

  • ABX has been an absolute beast on the charts, surging 154% year-to-date at $18.74, and hitting an annual high of $19.50 last week. Goldman Sachs rewarded the gold stock, lifting its price target to $22 from $16.30 -- and boosting the shares 3.5% this morning. Another round of bullish brokerage notes could provide another catalyst higher. After all, over two-thirds of analysts tracking Barrick Gold Corporation rate it a "hold" or worse.
  • Last night, KGC reported breakeven quarterly earnings but lower-than-expected revenue. Nonetheless, Goldman Sachs upgraded its rating to "neutral" and more-than-doubled its price target to $5.30 -- with at least five other analysts issuing price-target hikes, as well. As a result, Kinross Gold Corporation is 4.7% higher at $5.78, and just a chip-shot away from its annual high of $5.82, touched on May 2. This price action could have short sellers wringing their hands. During the last two reporting periods, short interest on KGC exploded 92.2% higher to over 16 million shares. On the other hand, recent call buyers should be pleased.
  • AUY received another round of price-target hikes, this time courtesy of Goldman Sachs (to $3.40) and HSBC (to $5), sending the shares sharply higher. Specifically, the gold stock is up 4.7% out of the gate at $4.82, bringing its 2016 gains to 159%. Meanwhile, short-term options traders have been unusually put-focused toward Yamana Gold Inc. The stock's Schaeffer's put/call open interest ratio (SOIR) stands at 0.62 -- in the 94th percentile of its annual range.
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