Analysts rate Kinross Gold Corporation (K:CA:TSX) with a Strong Buy, $10 Target

STA Research
by: STA Research
Kinross Gold Corporation stock

Analysts rate Kinross Gold with a consensus Strong Buy rating and a 12-month average target price of  $9.95 per share.

Jefferies Financial LLC upgraded Kinross Gold to Hold,  and maintained the $6 target on the company’s stock price.

Based on the Kinross Gold Corporation stock forecasts from 14 analysts, the average analyst target price for Kinross Gold Corporation is CAD 9.95 over the next 12 months. Kinross Gold Corporation’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Kinross Gold Corporation is Slightly Bearish, which is based on 4 positive signals and 6 negative signals. At the last closing, Kinross Gold Corporation’s stock price was CAD 7.21. Kinross Gold Corporation’s stock price has changed by +0.33% over the past week, +0.05% over the past month and -14.06% over the last year.

Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of gold properties principally in the United States, the Russian Federation, Brazil, Chile, Ghana, and Mauritania. It is also involved in the extraction and processing of gold-containing ores; reclamation of gold mining properties; and production and sale of silver. Kinross Gold Corporation was founded in 1993 and is headquartered in Toronto, Canada.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Underpriced compared to book value

The stock is trading low compared to its peers on a price-to-book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns

The company has underperformed its peers on annual average total returns in the past 5 years.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Highly leveraged

Compared to its sector peers on debt to equity, the company is in the bottom half and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector.

 

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