Roth Capital analyst Joe Reagor maintained a Buy rating on IAMGOLD Corp (NYSE:IAG), while reducing his price target to $4.25 (from $5.50), as the company reported its third-quarter financial results, showing a loss of $0.19 compared to Roth’s estimate of a $0.05 profit.
Reagor noted, “We view the results as slightly negative, but believe the future of the company hinges on the use of the proceeds from the Niobec sale. Given management’s continued pursuit of a potential acquisition we are lowering our price target.”
The analyst explained his new price target saying, “Following our modeling revisions, our DCF still returned a value of $5.20 for IAG’s shares, but given the current gold price environment and the potential for management to make an acquisition rather than repay debt we believe it is only prudent to discount this valuation by 18% to $4.25.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Joe Reagor has a total average return of -9.4% and a 28.2% success rate. Reagor has a -34.2% average return when recommending IAG, and is ranked #3286 out of 3376 analysts.