While the second quarter was disappointing, the company has had such bad quarters before and yet managed to reach/exceed its guidance for the year, said the broker.
Most of this production uplift is expected to come from the Kibali mine in the DRC.
Longer term, the story remains intact, added the broker, with Randgold to generate US$400mln of free cash flow (FCF) annually over the next three years.
The company has stated that it could top-up the dividend by as much as 80% of FCF, which makes it very attractive said Goldman.
“Also, given the increasing amount of negative yielding debt world-over, gold has become an attractive asset and, given that Randgold is one of the two precious stocks listed on the LSE with a fully covered dividend, the stock should continue to trade at a premium.”
Goldman has a 12,000p price target and buy rating.
“The Rio vibe is alive and well and the new CEO is energising the team,” he said, adding the aim in the near-term is to pay down more debt. UBS is buyer with a price target of 2,900p.
JP Morgan has raised its price target on aeroengines group Rolls-Royce (LON:RR.) by 14% to 835p, following other upgrades already this week.
Again, it is a better feel about Rolls’ cash flow that has prompted the upgrade, though the investment stance remains neutral reflecting a balance of investment positives and concerns.
While uncertainty has increased following Brexit and ahead of the Welfare to Work review, the shares remain 40% below peak despite no change in consensus earnings forecasts, says the German broker.
Akers Biosciences Inc's (LON:AKR) interim results met finncap’s expectations in what it says is a year of transition for the diagnostics group. A new chief executive is in place. First half revenues rose 15% to US$1.7m with good visibility on PIFA, its heparin allergy test. The broker’s price target remains 150p.
Shore Capital has started coverage of Savannah Petroleum (LON:SAVP) with a 30p target and buy view.
Savannah is now positioned to crack on with an active work programme through the next 18 months in the Niger Delta. Farm-out options remain on the agenda but Savannah is already positioned to proceed with a 3D seismic survey and drilling of up to six wells.
The risked NAV estimate rises to 80p/share (from 58p/share pre-suspension) added Shore.
Retailer Joules (LON:JOU) also gets a buy recommendation in an initiation note, though this time it is from finnCap. The target price is 200p and the broker expects Joules to achieve sector-leading earnings growth with a maiden dividend of 2.8p in 2017.