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Yamana Gold Inc. (USA) (NYSE:AUY)’s price adjusted at Morgan Stanley (NYSE:MS)

Boston, MA 07/11/2014 (wallstreetpr) – The stock of Yamana Gold Inc. (USA) (NYSE:AUY) will hit $11.50 per share within the next 12 months, according to the latest note to investors by analysts at Morgan Stanley (NYSE:MS).

The analysts previous expected the stock to reach $11 per share in the same period. Therefore, the new price target suggests an improvement from the previous target and also a premium of more than 38 percent on the prevailing price. They rate the stock an Overweight.

Growing optimism

Yamana Gold Inc. (USA) (NYSE:AUY) has recently received more favorable sentiments from analysts. For example, analysts at BMO Capital Markets maintained an Outperform view on the stock in the latest note to investors. They expect the stock to touch $11.50 per share.

At GMP Securities, analysts weighed in on the stock of Yamana Gold Inc. (USA) (NYSE:AUY) with a Buy rating. They previously had the stock on a Hold list. Out of 15 analysts tracking the stock, nine have a Buy recommendation on it while six have a Hold recommendation.

That leads to a consensus Buy rating and an average price target of $11.24.

New appointment

Yamana Gold Inc. (USA) (NYSE:AUY) recently unveiled a new leader in Barry Murphy as its SVP Technical Services. The appointment, which is expected to take effect in September, comes at a time when the company is trying to improve its performance by divesting non-core assets.

The company is offering three mines in Brazil for sale through which it may end up with about $3 billion proceeds. The mines are mature ones and are reportedly approaching the end of their lives. That is one reason why analysts think that a deal may not come quickly. Nonetheless, a deal will help the company to unlock funds for other investments.

Faltering performance

Yamana Gold Inc. (USA) (NYSE:AUY) had little to show for its 1Q2014. The company reported EPS of $0.02 for the quarter, yet analysts expected $0.04. Revenue also fell short of expectation, coming in at $353 million against the consensus estimate of $422.9 million. The company reports 2Q at the end of this month.

Published by Alan Masterson

Alan has over 25 years of trading experience in the U.S. equity markets. He began his career in finance working on a program trading desk specializing in over-the-counter stocks. His career progressed from that point to his current position as senior trader on an institutional trading desk. In the evenings, Alan teaches economics at a local community college. He has contributed articles to various publications over the last six years, including feature articles for an economics magazine and various financial blogs. You may contact Alan via his email ([email protected]) or his Google+ page (

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