RBC Dominion Securities has downgraded its rating on
Agnico-Eagle Mines Ltd. (
TSX: T.AEM,
Stock Forum) to “sector perform” from “outperform” and dropped its target price to US$31 from $38.
RBC attributed the move to a more pessimistic view of the outlook for gold.
The investment firm has reduced its long-term price assumption for the yellow metal to $1,300 an ounce from $1,400.
RBC expects Agnico-Eagle to have negative free cash flow in 2014.
Agnico-Eagle shares rose 0.63% to $27.33 Friday, leaving a market cap of $4.7 billion, based on 173.7 million shares outstanding. The 52-week range is $53.99 and $24.66.
Meanwhile, RBC has upgraded
Franco-Nevada Corp. (
TSX: T.FNV,
Stock Forum) to “outperform” from “sector perform” and raised its target price to $53 from $43.
“We have raised our Franco-Nevada model to update existing operating royalties and new feasibility-development stage gold assets (Brucejack, Golden Meadows, Kirkland Lake, ABX royalty portfolio), which have the potential to add 8-12% in annual revenue,’’ RBC said in a report.
Franco-Nevada shares rose 1.8% to $40.70, leaving a market cap of $6 billion, based on 147 million shares outstanding. The 52-week range is $58 and $33.05.
The spot gold price rose US$7.88 to US$1,233 an ounce Friday.