Goldman Sachs Downgrades Yamana Gold (AUY) to Neutral

Goldman Sachs downgraded Yamana Gold (NYSE: AUY) from Buy to Neutral with a price target of $6.25 (from $10.50).

Analyst Andrew Quail said, "We are removing Yamana Gold from the Americas Buy List, as our original thesis that the investors would be rewarded for its imminent growth has not played out. Since adding YRI.TO to the Americas Buy List on 09/20/13, shares are down 59%, underperforming GDX by 26% and our coverage by 35%. Key reasons for the underperformance – executional issues related to the three development projects in Brazil, increased net debt levels and poor operational performance over the past few quarters. While we acknowledge that we are downgrading at an attractive valuation (i.e. shares are trading at 15x FY15E P/E, c.25% below the senior gold average), we believe it will take time to rebuild investor confidence and we do not see any major catalysts in the intermediate term to change sentiment."

For an analyst ratings summary and ratings history on Yamana Gold click here. For more ratings news on Yamana Gold click here.

Shares of Yamana Gold closed at $3.98 yesterday.

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