| Goldcorp Reinstated At Outperform By Credit Suisse, Sees Cash Growth To Come | |
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In a report published Monday, Credit Suisse analyst Anita Soni reinstated coverage of Goldcorp Inc. (USA) (NYSE: GG) with an Outperform rating and $24 price target, following the sale of the company's stake in Tahoe Resources, Inc. (NYSE: TAHO) for about C$1 billion.
The sale adds liquidity to Goldcorp's balance sheet, and the analyst expects the company to end Q2 with cash worth close to $1 billion, along with $3.8 billion in debt. This increase in cash, as compared to Q1, is expected to help the company narrow the dividend funding gap, while continuing to ramp assets.
"GG increased its credit facility to US$3B from $2B on June 11th and extended the term to June 10, 2020. We est. GG's current $500M/year dividend is covered down to $1,150/oz gold in 2016, assuming no alternative accretive acquisition opportunities arise," Soni stated.
The analyst expects Goldcorp's FC profile to improve in 2017, driven by "(i) higher by-product production at Penasquito; (ii) ramp up of Cerro Negro and Eleonore; and (iii) lower taxes at Pueblo Viejo beginning in 2017," the Credit Suisse report added.
The EPS estimates for the company reflect the stake sale, weaker copper and silver prices and stronger CAD/USD.
Latest Ratings for GG
Date | Firm | Action | From | To |
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Jul 2015 | Credit Suisse | Reinstates | | Outperform | Jul 2015 | Credit Suisse | Reinstates | | Outperform | Jun 2015 | TD Securities | Upgrades | Buy | Action List Buy |
View More Analyst Ratings for GG
View the Latest Analyst Ratings
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Tahoe Resources Inc.
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EXPLORATION STAGE |
CODE : THO.TO |
ISIN : CA8738681037 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Tahoe Resources is a silver producing company based in Canada. Its main exploration property is ESCOBAL in Guatemala. Tahoe Resources is listed in Canada and in United States of America. Its market capitalisation is CA$ 1.5 billions as of today (US$ 1.1 billions, € 1.0 billions). Its stock quote reached its highest recent level on September 24, 2010 at CA$ 9.96, and its lowest recent point on June 28, 2019 at CA$ 4.95. Tahoe Resources has 312 300 000 shares outstanding. |