Wednesday, November 10, 2010

Golden Star Resources (NYSE:GSS) Generates Doubts After Weak Results

Several financial institutions have either downgraded or maintained holds on the rating of Golden Star Resources (NYSE:GSS) after their weak quarterly results were revealed, or lowered their guidance and price targets.

The latest is Canaccord Genuity, which said they are going to maintain a hold on Golden Star for now, although they've lowered their guidance and price target on the gold miner.

The major catalyst wasn't just the disappointing quarter, but the lowered production estimates going forward.

Canaccord said, "We are maintaining our HOLD recommendation on Golden Star following the release of weaker-than-expected Q3/10 results and a downward revision of 2010 guidance. Our rating is based on relative valuation. Golden Star trades at 1.10x P/NAV (5%/Spot) versus the junior producer average of 0.98x."

Golden Star was trading at $4.83, down $0.08, or 1.63 percent at 11:58 AM EST. Canaccord lowered their price target on them to $6 a share.

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