Credit Suisse Stays Bullish on Yamana Gold; Price Target Boosted (AUY)

Gold producer Yamana Gold Inc. (AUY) on Thursday caught some continued bullish support from analysts at Credit Suisse.

The firm reiterated its “Outperform” rating on AUY and raised its price target from $21 to $22. That new target suggests a 37% upside to the stock’s Wednesday closing price of $16.08.

A Credit Suisse analyst commented, “Exploration success at flagship assets drove the DCF increase: We are now modelling an additional ~500koz of GEO production over the life of mine at El Penon and ~2Moz additional gold production at Chapada. The exploration success will allow current levels of production to be sustained at both assets, we previously had them depleting somewhat in 2016-2020. Dividend likely to increase this year (Credit Suisse est.) as Ernesto Pau-a-Pique and C1 Santa Luz come into production at year end, given AUY’s history of growing dividends once new levels of sustainable cashflow are realized.”

Yamana Gold shares were mostly flat in premarket trading Thursday.

The Bottom Line
Shares of Yamana Gold (AUY) have a 1.37% dividend yield, based on last night’s closing stock price of $16.08. The stock has technical support in the $13-$14 price area. If the shares can firm up, we see overhead resistance around the $17-$18 price levels.

Yamana Gold Inc. (AUY) is not recommended at this time, holding a DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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