Coeur Mining (CDE) Stock Upgraded at BMO Capital
NEW YORK (TheStreet) -- Coeur Mining (CDE) - Get Report was upgraded to "outperform" from "market perform" at BMO Capital Markets. The firm raised its price target to $11 from $8.
The higher rating reflects the Chicago-based gold and silver producer's relative financial leverage and valuation in a rising price environment.
Operating improvements demonstrated over the last few quarters also contributed to the upgrade.
"CDE's net debt/equity remains the highest of the group, which provides financial leverage in a rising price environment (with the risk being that the reverse is also true)," the firm wrote in a note.
In a weaker U.S. dollar scenario, Coeur's cost improvement should become more evident relative to precious metal operations in Mexico and Peru, BMO added. But, the firm acknowledged the potential risk of higher fuel prices.
"Though CDE's share prices have risen 201% year to date, likely due to the company's leverage, we also estimate that the market has yet to fully price in the improvements to operating margins that the company has demonstrated over the last two years," BMO added.
Shares of Coeur are higher by 0.26% to $7.78 in pre-market trading on Thursday.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
This is driven by some concerns, which should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks covered by the team.
The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and poor profit margins.
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: CDE
