Kinross Gold (KGC) Stock Climbs on Deutsche Bank Upgrade

Kinross Gold (KGC) stock is rising in pre-market trading on Wednesday after Deutsche Bank boosted its rating on shares to ‘hold’ from ‘sell.’
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Kinross Gold (KGC) - Get Report are gaining 2.13% to $5.76 in pre-market trading Wednesday after Deutsche Bank raised its rating on shares to "hold" from "sell" due to valuation.

The firm also lifted its price target on the stock to $4.50 from $3.10.

Toronto-based Kinross operates mines and development projects in the U.S., Brazil, Chile, Russia and now West Africa following its approximately $8.7 billion stock acquisition of Red Back Mining in 2010.

"The gold price performance from 2012 to 2015 has driven uncertainty over the Tasiast (Mauritania) project longer term, which was the key asset from the Red Back transaction," Deutsche Bank wrote in an analyst note.

"However, recently the company has looked at a phased approach to the expansion. In early 2015, Kinross completed a $250 million bought deal following a $610 million transaction in Nevada to acquire an additional ~400k ozpa," the firm added.

Additionally, the stock is getting a lift from rallying gold prices today. For August delivery, gold is up 1.01% to $1,372.40 per ounce on the COMEX early this morning.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C- on the stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance.

But the team also finds that the company's cash flow from its operations has been weak overall.

Recently, 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 articles's author.

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

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