Northgate Minerals (NYSE:NXG) Retains "Buy" Rating from Canaccord

Northgate Minerals (NYSE:NXG) had its "Buy" rating maintained on them by Canaccord Genuity, even though weaker ore grades had caused third-quarter results to be disappointing.

"We reiterate our recommendation on Northgate based on relative valuation, superior leverage to higher gold prices, potential reserve/resource upside particularly at Young Davidson, Fosterville and Stawell and the optionality upside to the potential development of Kemess Underground. Q3/10 results were weaker than expected primarily on lower grades, but the company also announced a positive exploration update indicating the potential for material near-term reserve additions at Fosterville and Stawell," said Canaccord.

Northgate was trading at $3.16, gaining $0.13, or 4.29 percent as of 1:46 PM EDT. Canaccord has a price target of $5 on them.