Iamgold(IMG:TSX) Analysts downgrade to Sell

STA Research
by: STA Research

Raymond James Capital downgraded Iamgold Inc.  Sell from Market Perform, and cut the target to $2.25 from $3.00.

Credit Suisse also downgraded the stock to Sell, with a $2.50 target on the stock price.

Canaccord Capital downgraded to Sell, from Hold and lowered the target to $2.75  from $4.50

STA Research assigned a Speculative Buy rating and a $3.25 target on the company’s stock.

Iamgold Corp Stock Analysis:

Based on the Iamgold Corp stock forecasts from 11 analysts, the average analyst target price for Iamgold Corp is CAD 3.94 over the next 12 months. Iamgold Corp’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Iamgold Corp is Slightly Bearish, which is based on 4 positive signals and 8 negative signals. At the last closing, Iamgold Corp’s stock price was CAD 3.62Iamgold Corp’s stock price has changed by -0.55% over the past week, -20.26% over the past month and -11.06% over the last year.

What we like:

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

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:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

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 cashflow 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 to buy.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity 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.

Overpriced on free cash flow basis

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

Low Earnings Growth

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

Low Revenue Growth

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

 

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