Lake Shore Gold (LSG) a Diamond in the Rough, TheStreet Upgrades Stock

NEW YORK (TheStreet) -- Shares of Lake Shore Gold  (LSG) are down 7.54% to $1.09 in afternoon trading on Wednesday after the company's stock was downgraded by CIBC. 

Analysts at the firm downgraded the stock to "sector perform" from "sector outperform." The downgraded outlook runs contrary to the "buy" rating and $2 price target that analysts' at TD Securities gave the gold producer on Monday.

Analysts at Zacks are also bullish on the stock, upgrading the company's shares to "buy" from "hold", although they also gave it a downside price target of $1.

(Subscribers get upgrades and downgrades ahead of the market. Find out more onTheStreet Quant Ratings here.)

Separately, the company's stock was upgraded by TheStreet Ratings. TheStreet raised the company's  rating to "hold" from sell while also upping its letter grade to C from D+. TheStreet identified several strengths in the company such as its solid stock price performance, largely solid financial position, reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, TheStreet also finds weaknesses including the operating cash flow and unimpressive growth in net income.

TheStreet chartist Bruce Kamich also commented on Lake Shore today, saying that the charts support TheStreet's upside outlook.

"In the one-year daily chart of Lake Shore, above, several dips into the 80 cents to 70 cents area were bought. The On Balance Volume (OBV) line is moving in a positive direction and the Moving Average Convergence Divergence (MACD) oscillator generated a recent buy signal above the zero line. The upside breakout is also impressive as Lake Shore rallied above the rising 50-day and 200-day averages and June highs," Kamich said.

"The longer term chart of Lake Shore, above, shows off a three year base. The OBV line has been going up the past two and a half years on this time frame, suggesting that forward-looking investors have been building a significant long position. Prices are above the 40-week moving average, but the slope of this average has yet to turn up."

"A weekly close above $1.25 on Lake Shore would open up a price target of $2. While a $2 stock will be passed over by most institutional buyers, we still like this name. Remember to do your fundamental homework on Lake Shore, read the fine print and decide on a stop loss. A decline to 80 cents again would not be positive at this point," Kamich concluded. 

TheStreet Ratings uses an algorithmic model to determine a rating for risk-adjusted total return prospect over 12 months.