Gold Fields downgraded to Underperform from Market Perform at BMO Capital

BMO Capital analyst Raj Ray downgraded Gold Fields to Underperform from Market Perform with a price target of $12, down from $14. The stock outperformed peers over the last 12-months, buoyed by index flows and gold price appreciation, but the premium valuation is not justified especially in light of the operational risks across the portfolio, the analyst tells investors in a research note. The firm sees potential for Gold Fields’ 2023 results and 2024 outlook to disappoint when the company reports on February 22. The Australian operations, which account for 45% of Gold Fields’ production, has potential to disappoint market expectations, says BMO.