- Iamgold Corp (TSX:IMG) (NYSE:IAG) has been downgraded to Market Perform from Outperform, and the price target has been lowered to $2.75 (a downside of 19.5%) from $4 by BMO Capital Markets analyst Jackie Przybylowski.
- The downgrade is partly on valuation as the company's share prices have appreciated YTD, says the analyst.
- According to Przybylowski, a review of Iamgold estimates resulted in a reduction in Q1/22 and 2022 production expectations and increased costs to align with previous Iamgold guidance.
- More importantly, the analyst expects the company's review of Côté's budget (and potentially timeline) later in Q2/22 will be a negative for the previous forecast.
- Przybylowski has turned more optimistic about Iamgold with the appointment of new board members and the forthcoming nomination of a new CEO.
- Price Action: IMG shares are trading lower by 8.74% at C$4.28 on TSX, and IAG is lower by 8.22% at $3.41 on NYSE on the last check Monday.
