UPDATE: Credit Suisse Raises Price Target On Goldcorp As Penasquito Drives Higher CF And NAV

In a report published Tuesday, Credit Suisse analyst Anita Soni reiterated an Outperform rating on Goldcorp Inc. (NYSE: GG), and raised the price target from $24.00 to $26.00.

In the report, Credit Suisse noted, “TP increased to $26 from $24, maintain Outperform: Our TP increases on a better FCF outlook for 2015/2016 (+$328M cumulative, OpCFa based valuation goes to $24 from $20) and 4% NAV increase to $14.15/sh from $13.65/sh (NAV based valuation to $28 from $27). Guidance for lower op. costs, capex, G&A and taxes in 2015 drove the improved FCF forecast. Updated production guidance largely in-line with CS at the higher end of the range with GG guidance of 3.300-3.600Moz vs. CS est. of 3.539Moz (adj. for Wharf sale). Credit Suisse view of other brokers was 3.510Moz. AISC guidance for 2015 of $875-950/oz slightly better than CS estimate of $932/oz. With slightly better AISC driven by total cash costs of $500-$550/oz vs. CS estimate of $537/oz (at GG metals price assumptions). GG's metal price assumptions are slightly above spot, which is offset by more conservative FX assumptions vs. spot.”

Goldcorp closed on Monday at $21.46.