Eldorado Gold (EGO) Stock Up, Credit Suisse Upgrades

NEW YORK (TheStreet) -- Shares of Eldorado Gold (EGO) were advancing in early afternoon trade on Monday as Credit Suisse increased its rating on the stock to "outperform" from "neutral."

The firm also raised its price target on shares of the Vancouver-based gold mine operator to $5.50 from $5.

Credit Suisse said in a note released earlier today that it now has "improved clarity" on Eldorado's longer term outlook, seeing growth drivers through 2020.

Eldorado stock has declined 15% vs. peers in recent months due to "higher perceived political risk." The company has suffered because of its exposure in Turkey following a July 15 coup attempt against Turkish President Recep Tayyip Erdogan, the firm noted.

However, Credit Suisse added that foreign investment has not been impacted by unrest in the region, and headwinds to Eldorado seem to be receding.

Separately, gold prices were declining in mid-afternoon trade on Monday as analysts considered the possibility of an upcoming interest rate hike.

Gold for December delivery was down 0.69% to $1,325.30 per ounce on the COMEX this afternoon.

Separately, 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.

TheStreet Ratings rated this stock as a "sell" with a ratings score of D+.

The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and weak operating cash flow.

You can view the full analysis from the report here: EGO


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