NEW YORK (TheStreet) -- Kinross Gold Corp. (KGC) closed down 3.7% at $2.61 after Credit Suisse had downgraded the company to "neutral" from "outperform" and lowered its price target to $3.25 from $3.75.
"Our lower target price incorporates our revised commodity price deck. KGC is downgraded on relative valuation following its strong 20% plus outperformance vs. peers since November 1," analysts' noted.
"We continue to view KGC as a strong FCF generator assuming it does not pursue a Tasiast expansion in the near term. However, geopolitical headwinds (43% of NAV) remain an overhang," analysts' continued.
"Kinross is subject to commodity price and foreign exchange risk as fluctuations in the gold price or foreign exchange rates will impact Kinross profitability. Kinross is subject to inflationary pressures particularly for fuel, consumables, equipment and labor," they added.
Gold futures for February delivery were down 0.93% to $1,196.50 an ounce at 4:16 p.m. on the COMEX in New York.
Separately, TheStreet Ratings team rates KINROSS GOLD CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate KINROSS GOLD CORP (KGC) a SELL. This is driven by several weaknesses, which we believe 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 we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."