Gold Fields (GFI) Stock Gains on Goldman Sachs Upgrade

Gold Fields (GFI) stock is increasing this afternoon following a ratings upgrade to 'buy' at Goldman Sachs.
By Rachel Graf ,

NEW YORK (TheStreet) -- Shares of Gold Fields (GFI) - Get Report are rising 3.46% to $5.53 in early-afternoon trading on Friday after Goldman Sachs upgraded the stock to "buy" from "neutral."

Safe-haven demand has surged following Britain's recent decision to leave the European Union, benefiting gold prices.

Gold Fields in particular is poised to receive heightened investor interest given its high free cash flow and dividend yield, which has room to increase further, Goldman Sachs wrote in a note cited by Barron's.

At current gold prices, the company's South Deep gold mine is free cash flow positive, and Gold Field's Australian operations and Cerro Corona have a longer "mine life" given higher resource conversion to reserves, the firm added.

"This should ease concerns over production tapering," Goldman Sachs said.

Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D+.

Gold Fields's weaknesses include its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and feeble growth in its earnings per share.

You can view the full analysis from the report here: GFI

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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