NEW YORK (TheStreet) -- Gold Fields (GFI) shares are climbing, up 5.72% to $3.51, in early afternoon trading after the company's rating was upgraded to "outperform" from "sector perform" by analysts at RBC Capital today.
The firm maintained its price price target of ZAR55, or $4.49 per share.
Analysts at RBC said that the gold miner's stock appears to be oversold as the company's recent quarterly earnings miss has already been priced into the share price.
The earnings miss was driven by production issues at its South Deep mine in South Africa.
"Outside of South Africa we expect to see an improvement in both costs and production as the year progresses as Q1 weakness was driven by planned grade scheduling. We currently value South Deep at US$224 million and assume that it misses guidance of 229koz in 2015, with production of 208koz and peak production of 400koz in 2017," said analyst Jonathan Guy.
TheStreet Ratings team rates GOLD FIELDS LTD as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate GOLD FIELDS LTD (GFI) 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, poor profit margins and weak operating cash flow."