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Analyst Shifts on Gold Miners: Goldcorp Upgraded, Newmont Downgraded

Analyst Shifts on Gold Miners: Goldcorp Upgraded, Newmont Downgraded

By John Kimelman
Jan. 16, 2018 2:20 p.m. ET
On Tuesday morning, Credit Suisse analysts upgraded Goldcorp to "outperform," based on attractive growth, cash flow and valuation."  The firm also increased Goldcorp's target price from $15.50 to $19.00 a share.  Shares of the miner were up 4.3%, to $14.96 a share in midday trading.
Goldcorp was trading at $13.39 a little over a week ago when Barron's writer John Kimelman quoted analysts who contended that the company, thanks largely to a new management team put it place in early 2016, could outperform the gold-mining sector. On Tuesday morning, Credit Suisse, which wasn't quoted in the Barron's article, issued a research report stating that  Goldcorp "has reestablished a good operational track record by achieving 2016 and (we expect) 2017 production, cost and capex guidance."
At the time of the Barron's article,  Goldcorp had fallen 6% in the past 12 months because, as JPMorgan’s  John Bridges put it, investors sent Goldcorp to the “penalty box” for failing to deliver on production-growth promises made by previous management.
Meanwhile,  Deutsche Bank has downgraded shares of Newmont from Buy to Hold,  reducing the price target from $42 to $40. The downgrade came as a brief mention in a report focused on the metals and mining sector, stating only that the downgrade was due to valuation and the view that catalysts have "now largely played out."

Despite the downgrade, shares of Newmont were up 0.28%, to $39.90 midday Tuesday.  Meanwhile, shares of SPDR Gold Trust (GLD), the ETF proxy for the gold as a metal,  were trading flat on the day.