Gold Fields Stock Rally Is Unjustified, Says Bearish Analyst: 'Operational Risks Across Portfolio'
Portfolio Pulse from Priya Nigam
Gold Fields Limited (NYSE:GFI) shares dropped after BMO Capital Markets' analyst Raj Ray downgraded the stock from Market Perform to Underperform and cut the price target from $14 to $12, citing operational risks across the company's portfolio. Despite outperforming peers in the last 12 months, Ray highlighted issues such as delays at Salares Norte, operational underperformance in Australia and South Africa, and significant C-suite churn as reasons for the downgrade. Ray also lowered the 2024 earnings estimate for GFI, anticipating disappointing 2023 results and a bleak 2024 outlook.
February 02, 2024 | 5:02 pm
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Gold Fields Limited's stock was downgraded by BMO Capital Markets due to operational risks, with a price target cut from $14 to $12. The downgrade is based on issues like delays at Salares Norte, underperformance in Australia and South Africa, and C-suite churn.
The downgrade and price target cut by BMO Capital Markets directly impact investor sentiment towards GFI, likely leading to a short-term decrease in stock price. The detailed operational issues and lowered earnings estimate further justify the negative outlook, making a short-term price drop more probable.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100