Ahead of the Bell: IamGold
CIBC Analyst Upgrades IamGold, Expects Gold Price to Climb $250/ounce in Coming Years
October 12, 2007: 07:42 AM EST
NEW YORK (Associated Press) - A CIBC World Markets Corp. analyst on Friday upgraded IamGold Corp., saying he expects the price of gold to rally another $250 per ounce in the coming years.
Barry Cooper, in a client note, raised his rating on the Canadian gold miner to "Sector Performer" from "Sector Underperformer."
The company owns some gold development projects that investors are likely to view with increasing enthusiasm as gold prices rise, he wrote.
Cooper raised his gold price target to $800 an ounce in 2008, from a prior estimate of $725 an ounce. The analyst raised his 2009 gold price estimate to $850 an ounce from $775 an ounce.
During the past few months, the price of gold vaulted about $100, partly due to inflationary concerns after the Federal Reserve cut interest rates. The cut pressured the dollar, which traditionally moves inversely to the price of gold. Investors often turn to gold as a haven in times of economic uncertainty and falling dollar values.
These factors are likely to continue to prop up gold prices, along with ongoing demand in Asian countries like India, combined with tighter supplies, the analyst added.
Cooper also raised target prices on several other gold miners.
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