Friday, Credit Suisse upgraded Golden Star Resources Ltd. (GSC.TO) shares to Neutral from Underperform and increased its price target to $1.60 from $1.40. The brokerage lowered its 2009 EPS estimate to breakeven from $0.06, and its 2010 estimate to $0.06 from $0.14.
Analyst Soni upgraded the stock to Neutral, and increased price target to $1.60 based on a revision to his discounted cash flow, or DCF, to $1.97/share from $2.03. The analyst is revising his P/NAV multiple to 1.0X from 0.9X to reflect a stabilization of costs and two quarters of consistent performance from the company.
While costs remain high at BP, previously, costs had been on a continual upward climb at the asset, which the analyst believes represented operating risk and thus he has applied a discount to his NAV. The analyst lowered estimates primarily due to the result of increased DD&A expense.
Currently, GSC.TO is up C$0.09 or 4.92% and trading at C$1.92.
For comments and feedback: editorial@rttnews.com