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Monday, September 13, 2010

Credit Suisse (NYSE:CS) Raises Agnico (NYSE:AEM) Price Target

Agnico-Eagle Mines (NYSE:AEM) had its price target raised by Credit Suisse (NYSE:CS), increasing it to $79. Agnico was up to $64.74, gaining gaining $0.03, or 0.05 percent, at 3:21 PM EDT.

Credit Suisse had a price target of $75 a share on the gold miner before their increase.

In a note to clients, Credit Suisse said, "On Sept. 8, 2010, AEM provided an update on its 2010 exploration program. Our target price of $79.00/sh has been revised upwards from $75.00 based on increase to our DCF to $52.54 a share from $49.81 a share previously. The DCF revision results from additional ounces mined in our model. We apply a target P/NAV multiple of 1.5 times our DCF. We have revised our 2010 EPS upward to $1.46 from $1.40 as a result of marking to market our commodity prices, partially offset by an increase in exploration expense. Our 2011 and 2012 EPS were revised to $1.69 and $2.64 from $1.79 and $2.72 based on higher exploration expense."

Credit Suisse said AEM has been held back by the ignoring of its exploration over the past 18 months, saying start-up issues have for the most part now been taken care of.

Once investors realize that they see the share price rising to the estimated level.

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