UBS downgrades Genesis Minerals as share price soars
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The news: UBS downgraded its rating on Genesis Minerals after the gold miner reiterated its upgraded production guidance on Thursday, driving further share price gains.
The numbers: UBS lowered its rating on Genesis from 'buy' to 'neutral' but lifted its price target from $2.80 to $3.
The miner closed 4.4% higher at $2.86 on Thursday after reaffirming its upgraded guidance for FY25. Genesis shares have already climbed over 15% since the turn of the year, extending gains of around 80% over the last 12 months.
The context: UBS said the downgrade followed Genesis' recent share price rally and an upgrade to UBS' production outlook for the miner.
Elsewhere, Macquarie kept its 'outperform' rating on the stock and increased its target price 6% to $3.30. Its analysts said Genesis' strong restart of its Laverton mill in Western Australia was the key positive of the result, which saw the miner's Q2 production, sales, costs and cash all beat estimates.
Shaw and Partners maintained its 'buy' recommendation and raised its target price from $2.80 to $3.30, calling the stock "a core portfolio holding in the current market".
The sources: UBS research, Macquarie research, Shaw and Partners research
