The Globe and Mail reports in its Saturday, Dec. 7, edition that Canaccord Genuity analyst Carey MacRury raised his rating for Detour Gold to "buy" from "hold" on Friday, citing the market's reaction to Kirkland Lake Gold's proposed $4.9-billion acquisition of the Toronto-based miner. The Globe's David Leeder writes in the Eye On Equities column that Mr. MacRury elevated his share target to $27.50 from $24. Analysts on average target the shares at $25.85. Mr. MacRury says in a note: "Kirkland shares fell 17 per cent on the day following the announcement of the transaction, effectively eliminating the acquisition premium. As a result, Detour shares are trading well below the implied $27.50 offer price. And the Kirkland exploration update released earlier this week received a muted reaction from investors. Although DGC shares have rebounded somewhat, feedback from Detour shareholders suggest to us there is a risk Detour shareholders reject the transaction without a sweetener to restore some or all of the premium. As a reminder, the Detour shareholder vote has a 66.7-per-cent approval threshold." He maintained a "hold" rating and $55 target for Kirkland Lake. Analysts on average target the shares at $60.16.
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