Broker Recommendations for AQG Macquarie 14-Feb-13 Macquarie believes the concerns over Copler sulphides are unfounded and thinks the stock has been oversold. The broker is focused on the underlying value of the assets and has retained an Outperform rating. The target price has been reduced to $5.40 from $6.20.
Outperform Deutsche Bank 14-Feb-13 Deutsche Bank has incorporated 2013 guidance and a revised Copler production schedule as well as removed Frog's Leg from its estimates. This has lowered valuation by 14%.
The price target is reduced to $6.40 from $7.20 and the Buy rating is retained.
Buy BA-Merrill Lynch 13-Feb-13 BA-ML has raised the rating to Neutral from Underperform. Alacer has decided to go with an oxide mill rather than the sulphide project. The broker believes in the company's new strategy, seen as maximising cash flow from each ounce produced at Copler rather than increasing ounces, but finds detail is lacking.
Hence, the broker is taking a conservative line and raises the price target to $5 from $4.55.
Upgrade to Neutral from Underperform JP Morgan 13-Feb-13 JP Morgan has downgraded Alacer to Underweight from Neutral after the conference call. The broker finds the economics are questionable over choosing to exploit the oxide and overhaul the sulphide processing.
While acknowledging the intrinsic value of Copler, the broker believes investors will need a lot of patience in the absence of exploration success before value is realised. The price target is $3.85 from $4.70.
Downgrade to Underweight from Neutral UBS 13-Feb-13 Target $6.10 (was $6.80). The broker notes the Big Strategic Review is in and the big news is the company now intends to pay a special dividend of $70m from the proceeds of selling Frog’s Leg to La Mancha. Further, the broker notes the company also intends to start paying regular dividends in Q1 CY14.
Otherwise, the broker noted a distinct lack of details on the operations, which has left a lot of questions unanswered. The broker expects these unanswered questions will continue to be priced in by the market until some sort of resolution is reached. Neutral call maintained.
Buy Credit Suisse 13-Feb-13 Incorporating more details on the Copler project into their modeling has caused the broker to cut it price target to $4.40. But the analysts are quick in explaining this is simply their base case scenario.
he Net Present Value for Copler isT $4.40, which is above today's share price, they point out. Outperform rating retained.
Outperform CIMB Securities 27-Sep-12 The onset of QE3 in the US and the subsequent jump in gold prices has boosted the majority of gold stocks. The broker has reviewed the sector and while for some there is still material upside on offer, others have just run too far.
In the case of Alacer, the price target increases to $7.84 from $7.41. The Buy call is maintained and the stock remains the broker's top pick in the sector, with near-term growth prospects on offer.
Buy
AQG Price at posting:
$3.79 Sentiment: LT Buy Disclosure: Held
