Helca Mining Boosted to “Sector Perform”
Scotia Capital got a little more bearish on Idaho-based gold miner Hecla Mining Company (NYSE:HL) this morning, boosting its rating from Underperform to Sector Perform. Scotia also presented a new price target for HL of $6.15, which is a huge bump over its prior target of $3.75).
Helca shares jumped 3.5% in morning trading Wednesday as a result.
Scotia Slashes Randgold Resources to “Underperform”
UK-based Randgold Resources Ltd. (NASDAQ:GOLD) received a rare downgrade today from Scotia Capital today. Scotia lowered its rating to Underperform despite the stock’s huge uptick of +92% year-to-date.
Randgold is taking the downgrade in stride, however, gaining nearly 1% in morning trading.
IAMGOLD Upgraded to “Sector Perform”
Toronto-based gold mining giant IAMGOLD Corp (NYSE:IAG) caught a nice upgrade from Scotia Capital this morning. The analyst boosted its rating to Sector Perform.
IAG’s rebound from yearly lows has been miraculous, as the stock was trading at $1.15 per share as recently as January. Since then, the shares are up over 200%, adding another 1% to get up to $4.73 in morning trading Wednesday.
Gold Miners ETF Looking Unstoppable
Market Vectors Gold Miners ETF (GDX) continued its recent gains on Wednesday morning, up $0.52, or +1.8%. GDX has risen 118% since the start of 2016. It’s now trading around $30 per share after hitting all-time lows of $12.40 back in January.
Global economic concerns, including the recent Brexit, had fueled a resurgence in the demand for physical gold, and gold miners have benefitted handsomely over the first half of the year.
The only remaining question for investors is: are miners are little too hot to handle now? With such big gains in a short amount of time, many analysts are worried about some consolidation. Until cracks in the golden facade begin to show, however, there’s nothing stopping the GDX from running even higher.