Scotiabank maintained the Outperform rating on Kinross Gold(K:TSX), $9 target

STA Research
by: STA Research

Scotiabank Capital maintained the Outperform rating on Kinross Gold Corp. and the $9 target steady on the stock.

STA Research maintained the Buy rating on the company, with a $9 target on the stock.

Based on the Kinross Gold Corporation stock forecasts from 14 analysts, the average analyst target price for Kinross Gold Corporation is CAD 9.91 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 Neutral, which is based on 5 positive signals and 6 negative signals. At the last closing, Kinross Gold Corporation’s stock price was CAD 7.19. Kinross Gold Corporation’s stock price has changed by +0.11% over the past week, +0.57% over the past month and -11.78% over the last year.

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.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

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 under performed 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 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.

Low Revenue Growth

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

 

 

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