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Alberto Abaterusso
Alberto Abaterusso
Articles (1179) 

RBC Capital Upgrades AngloGold Ashanti

The South Africa gold stock was also upgraded during the last trading week.

November 14, 2017 | About:

AngloGold Ashanti Ltd. (NYSE:AU) has been upgraded by two analysts over the last trading week.

Shares of the South African gold producer were upgraded by RBC Capital Markets to Outperform from a previous rating of Sector Perform according to a research note dispatched by the Canadian firm Nov. 13.

Six days earlier, on Nov. 7, AngloGold Ashanti was upgraded by HSBC to Buy from a previous rating of Hold.

Source: Yahoo Finance

Over the last 12 trading months, shares of the South African miner also received three downgrades: two of these were issued this calendar year from RBC Capital (to Market Perform) on April 24 and from Citigroup (NYSE:C) with a Sell rating on Feb. 22 and the third one was received last year from Citigroup (to Sell) May 10.

During the same span, Gabelli & Co. started covering shares of AngloGold Ashanti on Oct. 18, 2016, with an initial rating of Buy.

As reported by thefly.com, Richard Hatch, analyst at RBC Capital, Hatch has mentioned the company's emanation of a rebase plan for its Ghanaian Obuasi mine, the successful unload of AngloGold Ashanti’s assets base with the most costly assets that are located in South Africa region and developments the miner is undertaking at its Congolese Kibali mine as the main catalysts to the market value of AngloGold Ashanti.

The analyst also foresees a rise in AngloGold Ashanti’s free cash flow in addition to a decline in the sustaining capex.

RBC Capital has not only raised its rating on AngloGold Ashanti, but it has also increased by 9% to about 170 South African rand ($11.75) from a previous price target of about 156 rand.

RBC Capital’s new target price has dragged the average target price of AngloGold Ashanti up to $13.30.

Source: Yahoo Finance

The average target price is a mean of four estimates that range between a low of $11.50 and a high of $15.53. The average of $13.30 represents an almost 37% upside in the current market valuation of AngloGold Ashanti that year to date reversed and lost more than 7%.

The gold stock is trading far below the 200 simple moving average line and a little bit above the 50 simple moving average line.

The South African gold stock is trading at $9.73 per share on the New York Stock Exchange and almost 41% below its 52-week high price of $13.38 per share. The 52-week low price is $8.89 per share.

AngloGold Ashanti has a recommendation rating of 2 out of 5.

Disclosure: I have no positions in AngloGold Ashanti.

About the author:

Alberto Abaterusso
If somebody asks what being a Value Investor means, Alberto Abaterusso would answer: “the Value Investor is not the possessor of a security that represents the company, but he is the owner of that company. As an owner of the company the Value Investor is actively involved in the dynamics of that company and his first aim is how to have sales progressively growing.”

Alberto Abaterusso would add: “probably the Value Investor is one of the least patient persons in the world concerning sales.”

Alberto Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

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