UPDATE: Credit Suisse Reiterates on AuRico Gold on Higher NAV Multiple

In a report published Thursday, Credit Suisse analyst Anita Soni reiterated an Outperform rating on AuRico Gold (NYSE: AUQ), and raised the price target from $5.00 to $6.00.

In the report, Credit Suisse noted, “Our TP is raised on a higher NAV multiple (1.25x from 1.15x) as AUQ is well positioned to benefit from the growth and operating cost reductions provided by the continued ramp up of its long life Young Davidson asset. Our TP is based on an even weight of our $7 NAV valuation and $5 OpCFa valuation. Our NAV valuation is based on 1.25x our $5.77/sh DCF with net debt of $0.43/sh deducted at par. Our OpCFa is based on 18x our FY14/15E avg. OpCFa of $0.27/sh.”

AuRico Gold closed on Wednesday at $4.79.