Analyst Actions: Golden Star PT Cut, Estimates Lowered, Neutral Kept at Credit Suisse; Shares Rise 1%
Analysts at Credit Suisse have lowered their earnings estimates for Golden Star Resources Ltd. ( GSS ), while also cutting the price target on the stock to $1.60 from $1.80. The Neutral rating was left unchanged.
The firm said the change reflects higher capital expenditure in 2013 (+$26M vs. Credit Suisse est.) and updating for a Feb. 9-10th mine tour.
"While potential expansion at Wassa and potential for further resource growth is a positive, new management faces the challenges of funding a Wassa expansion and turning Bogoso into a CF positive operation," said Credit Suisse. "For GSS to return as a go to name for leverage to the gold price, investors will need to see costs improve (on an all-in basis including capex)."
Credit Suisse analysts lowered their 2013, 2014 and 2015 EPS estimates to $0.06, $0.06 and $0.08 from $0.17, $0.23 and $0.15 respectively.
Shares of GSS are up 0.66% to $1.52 in afternoon trade, amid a 52-week range of $0.90 - $2.11.