The Globe and Mail reports in its Wednesday, Nov. 27, edition that CIBC World Markets analyst Cosmos Chiu lowered Kirkland Lake Gold to "neutral" from "outperformer" with a $60 share target, down from $73.
The Globe's David Leeder writes in the Eye On Equities column that Mr. Chiu says in a note: "This transaction was unexpected, as it takes the portfolio beyond KL's current focus in high-grade underground mines. Long-term, we see the merits of this acquisition, by adding a third cornerstone mine to the asset base and potentially creating a Canadian champion. However, the acquisition adds to the near-term risk profile of the company, and it is for this reason that we are downgrading KL shares." Elsewhere,
National Bank Financial analyst Mike Parkin dropped his rating on Kirkland Lake to "underperform" from "sector perform" with a $50 share target, slipping from $66. The Globe reported on Oct. 9 that Credit Suisse analyst Fahad Tariq had commenced coverage of Kirkland Lake with a "neutral" rating, seeing few near-term catalysts beyond exploration updates. The shares could then be had for $63.35.
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