Goldcorp Inc. (GG, Financial) took a jump after an upgrade from Canaccord Genuity. The stock was up 1.4% to $14.28 a share in trading late Tuesday morning.
According to a Monday research note, the Canadian analyst upgraded ordinary shares of Goldcorp Inc. to 'Buy' from a previous rating of 'Hold.'
With yesterday’s positive rating, Canaccord Genuity has not revised its price target. This means that the average target price will stay unaltered at $17.92 per share. The average target price is a mean of 20 estimates ranging from $12 to $25 per share and a 27.3% growth from the current share price of $14.08 per share.
Over the last seven months of trading, the Canadian stock received five positive ratings and one downgrade: Credit Suisse (Neutral to Outperform on Jan. 16, 2018); Citigroup (Neutral to Buy on Nov. 30, 2017); RBC Capital (Sector Perform to Outperform on Nov. 1, 2017); and Canaccord Genuity (Hold to Buy on Sept. 29, 2017). Over the same span of time, the stock was downgraded by HSBC (Buy to Hold) on Nov. 22, 2017.
As of April 2018, about 54.5% of Wall Street’s analysts recommended buying shares of Goldcorp. However, the stock in Goldcorp Inc. is not trading cheaply today since the share price is far above the 200, 100 and 50 SMA lines:
Therefore, I would stay with the 41% of analysts who are for a hold approach. The recommendation rating is 2.2 out of 5.
Some other indicators on Goldcorp indicate that the price-book ratio is 0.85 times versus an industry median of 2.06 times and it has an enterprise value to earnings before interest, taxes, depreciation and amortization ratio of 11.25 versus an industry median of 9.90 times. The 52-week range is $11.64 to $15.55 per share.
The company will release its first quarter 2018 results on Wednesday after market close.
Adjusted earnings are expected to be at $11 cents per diluted share on a quarterly revenue of $897.31 million. Exactly a year ago, the miner closed bottom and top lines of its income statement with 9 cents per diluted share and $882 million.
GuruFocus assigns Goldcorp Inc. a financial strength rating of 5 out of 10 and a profitability & growth rating of 7 out of 10.
During the last quarter of 2017, Pioneer Investments (Trades, Portfolio) started a position in Goldcorp and bought 2,678,555 shares.
First Eagle Investment (Trades, Portfolio) has increased its holding by 3.59% to 37,179,979 shares, Caxton Associates (Trades, Portfolio), -33.33% to 300,000 shares, John Hussman (Trades, Portfolio), -23.08% to 250,000, Jim Simons (Trades, Portfolio) -46.80% to 2,061,173 shares and Ray Dalio (Trades, Portfolio), -19.82% to 270,418 shares.
(Disclosure: I have no positions in Goldcorp Inc.)
