Assessment + Revised TargetsQ. Two analysts have reduced their price targets for KL and it has been lagging behind many of its peers lately. Any ideas why the sentiment has turned negative?
A. KL still has 12 BUYS and 2 HOLDS. The stock has indeed lagged as it missed Q3 estimates. But production continues to grow, it just raised its dividend by 50%, and it's very cheap on a valuation basis at 12X earnings. It also has $840M net cash. We are not exactly sure of the problem but still like it and it is certainly priced well.
So said 5iResearch late last week. And despite the downgrades, as can be seen, analysts are still looking for anywhere from 30 to 60% SP appreciation. Just opened a position. GLTA 12/14/2020 National Bank Financial Lower Price Target C$72.00 C$71.00
12/14/2020 BMO Capital Markets Lower Price Target C$100.00 C$85.00
12/11/2020 Scotiabank Lower Price Target C$70.00 C$68.00
12/3/2020 TD Securities Lower Price Target Buy C$89.00 C$84.00