2010-01-21 09:28 ET - In the News
The Financial Post reports in its Thursday edition that new and improved forecasts for gold, silver and copper will bolster upside in Yamana Gold shares over the next year, says Dundee Securities analyst Ron Stewart.
The Post's David Pett, writing in Trading Desk, says Mr. Stewart upgraded Yamana to "buy" from "neutral," raising his price target on the miner 50 cents to $14.50. "We recommend investors consider YRI as a relatively stable and liquid precious metal equity based on the current outlook," the analyst said.
The update comes in the wake of Dundee's revised metals forecast that now anticipates gold bullion to average $1,200 per ounce in 2010 versus its previous estimate of $1,065 and $1,325 per ounce in 2011, up from $1,000 (all metal prices in U.S. dollars). Silver prices are expected to hit $20 this year and $22 in 2011, up from prior forecasts of $17.50 and $16.50, while copper price expectations increased to $3.25 per pound from $3 in 2010 and to $3 from $2.75 in 2011.
Mr. Stewart also raised his recommendation on Goldcorp Inc. to "buy" from "neutral." He said, "Given the increase in our valuation and the recent dip in the share price, we now consider [Goldcorp] to be undervalued."
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