Roth Capital Slightly Raises IAMGOLD Price Target To $5.50; Maintains Buy
In a research report issued today, Roth Capital analyst Joe Reagor maintained a Buy rating on IAMGOLD Corp (NYSE:IAG) with a price target of $5.50, as the company announced it had reached an agreement to sell its Niobec Mine to Magris Resources for $500 million in cash.
Reagor said, “We believe the added balance sheet strength this transaction provides will allow IAG to either repay debt or to acquire a low cost producing gold mine.” The analyst added, “In addition to adjusting our model for the expectation of a Q4 transaction close, we updated our gold price assumption for the Q3 spot price of $1,281 per ounce, adjusted our gold bullion valuation to reflect a gold price of $1,190 per ounce, and adjusted for an expected full halt in processing at Yatella in Q4 2014.”
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 -9.5% and a 18.5% success rate. Reagor has a 3.1% average return when recommending IAG, and is ranked #3216 out of 3315 analysts.