JPMorgan Chase & Co. (JPM) has maintained an overweight rating on shares of Gold Fields Ltd. (GFI, Financial).
It is the second time the global bank has issued a rating to the South African gold producer. The new rating was communicated in a research note released earlier this week.
On March 3, 2017, the U.S. bank upgraded the stock to overweight from a rating of neutral.
JPMorgan has also raised its price target on Gold Fields to $6.3 per share. The new price target that JPMorgan expects the miner to hit during the following 52-weeks of trading should move the average upwards by 8% to $4.85.
The price target of $4.85 per share is a mean of five estimates.
The estimates range between a low of $2.91 and a high of $7.06 per share. The mean is also a 34.4% upside from the current share price of $3.72.
Year-to-date Gold Fields has lost 16% and underperformed the Van Eck Vectors Gold Miners ETF (GDX, Financial) by 11%.
The stock on the New York Stock Exchange is valued at about $3.03 billion. GuruFocus indicates that the price-book ratio is 0.89 versus an industry average of 2.06 times. While the EV-to-Ebitda ratio is 7.90 times versus an industry median of 9.90.
According to the chart powered by GuruFocus, Gold Fields is still trading cheaply since the share price is abundantly below the 200, 100 and 50-SMA lines:
The 52-week range is $ 3.06 to $4.70.
With its Ebitda margin of 20%, Gold Fields is not the best-performing in the gold mining industry, however, it is a good option to expose the portfolio to changes in gold price.
Gold Fields is reporting $821.53 million ADR’s outstanding, of which 35.7% is held by institutions.
Van Eck Associates Corp. holds 24.77% of the total stock in Gold Fields and Dimensional Fund Advisors LP, at 10.52%, are the top shareholders of the South African miner. Holdings are as of Dec. 31.
During the last quarter of 2017, Ray Dalio (Trades, Portfolio) (-3.93% to 148,479 ADR’s) and Chuck Royce (Trades, Portfolio) (-2.69% to 1,698,766 ADR’s) reduced their holdings.
Donald Smith (Trades, Portfolio) and Pioneer Investments (Trades, Portfolio) initiated a position in Gold Fields Limited. The investors hold 14,254,424 and 1,405,891 ADR.
Jim Simons (Trades, Portfolio) increased its position by 34.81% to 13,698,200 ADR.
(Disclosure: I have no positions in any security mentioned in this article.)
