Kinross Gold Corp: Takeover Target?

Kinross Gold Corporation (KGC) squeezes to new HOD, currently up 3.73% at $15.30 per share during Monday afternoon trading. Strength being attributed to a G&B article that says there’s a buzz on some trading desks that the miner is a ripe takeover target.

Shares of Kinross are down almost 23% so far this year, as of Friday. By comparison, Goldcorp Inc. (GG) has gained 2%, Barrick Gold Corp. (ABX) has lost 8% and Newmont Mining Corp. (NEM) is down 17%.

[via G&B]: The result is that in price-to-net-asset value, Kinross looks cheap. According to a recent analyst report from Canaccord Genuity, Kinross is trading at a substantial discount to peers in the senior and intermediate gold group.

G&B says that there’s no sense that anything is imminently going to happen to Kinross. But at the same time it notes that “when traders see a valuation gap like that they can’t help but wonder whether somebody is going to try to take advantage.”

KGC shares trade at a trailing P/E of 16.34, a forward P/E of 18.30 and a P/E to Growth ratio of 2.20. The median Wall Street price target on the co.’s stock is $23.62 with a high target of $26.00.

In terms of profitability, Kinros’ trailing 12 profit margin currently stands at nearly 26 percent while operating ones print at 29.24 percent. The co. has $1.47 billion in cash vs. $503 million in debt. Current ratio: 2.88.

Kinross Gold Corporation engages in the gold mining and related activities. The company was founded in 1972 and is based in Toronto, Canada.

About Ron Haruni 1036 Articles
Ron is the Co-Founder & Editor in Chief of Wall Street Pit. Web Site: Wall Street Pit

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