Gold Fields Limited (ADR) (NYSE:GFI): HSBC Downgraded Stock Despite Positive Sector Outlook


Dallas, Texas 11/13/2013 (Financialstrend) – In Tuesday’s trade, stock of Gold Fields Limited (ADR) (NYSE:GFI)shed 2.45% from its previous close to end the session at $4.38. This compares to its 52 week high of $12.79 and 52 week low of $4.26. The stock traded with volume of 3.12 million shares against its 3 month average volume of 7.29 million shares. Its 200 day and 50 day moving averages are $5.41 and $4.52, respectively. Gold Fields Limited (ADR) (NYSE:GFI)’smarket capitalization is around $3.23 billion.

Peer Comparison

The stock of Gold Fields Limited (ADR) (NYSE:GFI) has delivered about 65% negative returns year to date, losing $8.11 per share. In comparison IAmGold Corp (USA) (NYSE:IAG)’s stock has plunged about 60% bringing its market cap to $1.72 billion. The stock of Barrick Gold Corporation (USA) (NYSE:ABX) has dipped 48.5% narrowing its market cap to $18 billion; that of Agnico Eagle Mines Ltd (USA) (NYSE:AEM) fell 46.65% driving its market cap to $4.85 billion; and stock of Goldcorp Inc. (USA) (NYSE:GG) shed about 34.71% slashing its market cap to $19.46 billion.

When compared to broader indices, Dow Jones Industrial Average (INDEXDJX:.DJI) and S&P 500 (INDEXSP:.INX) has delivered over 20% and close to 24% returns year to date, respectively.

Analyst Outlook

Equities research analyst at HSBC Global Research, Patrick Chidley recently explained, “given the rebasing of gold equity prices to reflect the current gold price below USD1,300/oz, and HSBC’s view that gold can climb back above USD1,400/oz within a few months, we are upgrading a group of stocks and hold a generally bullish view on the gold sector, looking forward.”

However, following Q3 EPS Loss Forecast, Patrick Chidley downgraded Gold Fields Limited (ADR) (NYSE:GFI)from Neutral to Underweight and lowered the price objective from $6.20 to $4.30. In the most recent note Patrick also downgradedBarrick Gold Corporation (USA) (NYSE:ABX)from Overweight to Neutral on the fair valuation. The analyst lowered the price target to $19.60 from $21.1 that indicates potential upside of 8.7% from its previous close of $18.03.