RBC analyst raises outlook for Yamana Gold, cites positive outlook for gold

Aug.20, 2008 in U.S Hot Stocks

NEW YORK (AP) — RBC Capital Markets raised its outlook on Yamana Gold Inc. to “Outperform” from “Sector Perform” on Wednesday, citing a positive outlook for gold and the Canadian company’s growth plans.

Yamana shares closed Tuesday at $10.41. They’ve traded in a 52-week range of $9.26 to $19.93.

In a note to clients, RBC analyst Michael Curran said he viewed the drop in gold prices in recent months as “the summer doldrums.”

“Whether or not last Friday’s intraday low of $772/oz proves to be the summer 2008 low for gold, we believe many gold equities are at attractive entry points for a subsequent seasonal rally in the fall or later this year,” Curran wrote.

As for Yamana, Curran said strong growth plans and liquid gold equities have led shares to realize higher leverage to the price of gold than several other large-cap producers.

RBC maintained its 12-month price target for Yamana at $17 a share.

Yamana, based in Toronto, has operations in Brazil, Argentina, Chile, Mexico, Central America and the United States.

http://biz.yahoo.com/ap/080820/apfn_yamana_gold_ahead_of_the_bell.html?.v=1

Did you like this? If so, please bookmark it,