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Citi downgrades Polymetal to sell

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A downgrade from broking behemoth Citigroup failed to take the shine off Polymetal (LON:POLY) shares on Friday.

The broker, which now rates the Russian gold producer a ‘sell’, made the move after a recent rally in the share price, which it believes is unwarranted.

The company’s first-half results saw the shares slide as they reflected the lower gold price environment of 2013.

It reported a net loss of US$255mln, missing analyst forecasts, with write-downs of US$305mln in the period.

“Polymetal’s share price has risen by 40% since June and we have found it increasingly difficult to justify the higher prices,” said analyst Jon Bergtheil.

As well as a move from ‘neutral’ to ‘sell’, he also drops his target price for the shares from £6.98 to £6.12.

The shares added 2% to 744.8p on Friday.

Quick facts: Polymetal International PLC

Price: 1260.5 GBX

LSE:POLY
Market: LSE
Market Cap: £5.93 billion
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