HSBC Downgrades Goldcorp to Neutral (GG)
Goldcorp (NYSE:GG) was downgraded by HSBC from an “overweight” rating to a “neutral” rating in a research note issued on Tuesday, StockRatingsNetwork.com reports. They currently have a $30.00 target price on the stock, down from their previous target price of $31.10. HSBC’s target price suggests a potential upside of 10.70% from the company’s current price.
The analysts wrote, “Although Goldcorp reported strong Q3 results and the impact of cost cutting measures on the bottom line is becoming evident, the Cerro Negro delay and capex blow-out is clearly a setback. The project delay and subsequent capex increase, offset somewhat by positive advances on the operating front at several mines, have led to a slight cut in our valuation for GG and we reduce our TP to USD30 from USD31.10. The net effect of GG shares climbing c11% in the last two weeks and the decline in our TP is that a potential return now lies within the Neutral (V) band and, hence, we downgrade our rating of Goldcorp shares to Neutral (V).”
Other equities research analysts have also recently issued reports about the stock. Analysts at Scotiabank reiterated a “sector outperform” rating on shares of Goldcorp in a research note to investors on Friday. They now have a $33.00 price target on the stock. Separately, analysts at RBC Capital cut their price target on shares of Goldcorp from $37.00 to $36.00 in a research note to investors on Friday. They now have an “outperform” rating on the stock. Finally, analysts at Credit Suisse cut their price target on shares of Goldcorp from $28.00 to $25.00 in a research note to investors on Friday. They now have a “neutral” rating on the stock. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and ten have given a buy rating to the stock. Goldcorp presently has an average rating of “Hold” and an average price target of $31.41.
Shares of Goldcorp (NYSE:GG) traded down 1.73% on Tuesday, hitting $26.63. The stock had a trading volume of 2,295,065 shares. Goldcorp has a 52 week low of $22.22 and a 52 week high of $47.42. The stock’s 50-day moving average is $28.77 and its 200-day moving average is $28.88. The company’s market cap is $13.315 billion.
Goldcorp (NYSE:GG) last announced its earnings results on Thursday, October 24th. The company reported $0.23 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.20 by $0.03. The company had revenue of $1.20 billion for the quarter, compared to the consensus estimate of $1.19 billion. During the same quarter in the prior year, the company posted $0.54 earnings per share. The company’s quarterly revenue was down 6.4% on a year-over-year basis. On average, analysts predict that Goldcorp will post $0.95 earnings per share for the current fiscal year.
Goldcorp Inc (NYSE:GG) is a gold producer engaged in the operation, exploration, development and acquisition of precious metal properties in Canada, the United States, Mexico and Central and South America.
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