Credit Suisse has massively upgraded its targets for London’s largest gold stock, Randgold Resources (LON:RRS).
The Swiss bank’s price target rises by around 65% to 6,400p from 3,900p, though its rating remains as ‘neutral’.
Conor Rowley, Credit Suisse analyst, says the outlook for gold appears more constructive given the yellow metal’s ‘safe haven’ asset status and the increasingly uncertain macro-economic picture.
In a note, Rowley said: “Randgold delivered a strong set of FY15 results guiding to 2016+ cash costs significantly below where we had anticipated. We have increased our EBITDA estimates by 10-15% over the next 3 years and our TP to £64 as a result.”
That said, the analyst notes that Randgold’s re-rating in the year-to-date (up to 5,700p per share) has largely priced in the improved financial results and that moves higher would be driven by gold prices.
He highlights that if the gold price rises as high as $1,400 per ounce there’s room for Randgold shares to rise by a further 30%.
Elsewhere, Glencore (LON:GLEN) was downgraded by Societe General to ‘hold’ from ‘buy;.
Goldman Sachs downgraded BBA Aviation (LON:BBA) to ‘neutral’ from ‘buy’.
Cambian Group (LON:CMBN) was given a ‘neutral’ rating by JP Morgan Cazenove, which also cut its target to 109p from 287p. Meanwhile, Barclays repeated an ‘overweight’ rating but dropped its target to 128p from 200p.
Peel Hunt upgraded Marshalls (LON:MSLH) to ‘buy’ and set a 355p target.
Cantor Fitzgerald, meanwhile, believes Indian power utility OPG’s (LON:OPG) current share price does not fully reflect the value of completed assets, nor does it take account of additional upside from potential new investment.
With commercial operation now at its full 750MW capacity, OPG can move towards setting a dividend policy, pay shareholders and generate attractive cashflows for further investment, it said.
Cantor’s research suggests that OPG could add 87p to the broker’s original target price of 130p creating a total value of over £2 through reinvestment in the period to 2020.
'Buy' was the recommendation but with a target price reduced by by 4p to 130p.