NEW YORK (TheStreet) -- Agnico Eagle Mines (AEM) was rising 6.5% to $30.48 on Thursday after Sterne Agee upgraded shares to "buy" from "neutral," and raised the target price to $38.
The firm cited "solid corporate actions, mine maturity, and production growth" that "should allow for return and cash generation upside" as the reasons for the upgrade. Sterne Agee also lowered its EPS estimates for 2014 to $1 from $1.65 and for 2015 to $1.40 from $1.75.
"During the past 15 years, we have found Agnico to have been one of the best managed senior North American gold producers, providing valuation and resource growth while being careful not to dilute shareholders significantly," the report reads. "Agnico continues to offer one of the highest growth profiles in the industry, especially in an environment where most large and mid-cap miners expect flat to negative growth over the next few years. Agnico's operations are located in politically stable regions of Canada, Mexico, and Finland. We support Agnico's capital and cost-savings targets with potential for additional reductions while exhibiting ample liquidity."
TheStreet Ratings team rates AGNICO EAGLE MINES LTD as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate AGNICO EAGLE MINES LTD (AEM) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow."