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Downgrading Agnico-Eagle Mines To Neutral, Lowering Price Target - Credit Suisse Comments

By RTTNews Staff Writer   ✉  | Published:  | Google News Follow Us  | Join Us
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Thursday, Credit Suisse downgraded Agnico-Eagle Mines Ltd. (AEM.TO) shares to Neutral from Outperform and lowered its price target to $68 from $80.

Analyst Soni lowered his price target to $68 from $80 based on a decrease to his discounted cash flow, or DCF, to $37.50 from $38.52 and a revision to his target multiple to 1.8X from 2.05X. The revisions to the analyst's DCF are based on continued start up issues at each of the company's newer mines.

The analyst has made preliminary, but material revisions to his model based on third quarter of 2009 operating results and revised production guidance. The analyst would further refine his model after he seek clarification on several points on the conference call.

The analyst downgraded the stock, as his revised price target would provide insufficient return to maintained an Outperform rating, below his threshold of 15%. While the analyst does believe that these issues will be resolved, the company would likely trade at a lower multiple until progress is made on resolving these issues.

Currently, AEM.TO is down C$3.85 or 5.82% and trading at C$62.25.

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