Time to take profits in Randgold, Morgan Stanley says

|By:, SA News Editor

Randgold Resources (GOLD -0.2%) is downgraded to Equal Weight from Overweight at Morgan Stanley, which says the stock appears fully valued with metal prices “far above spot leaving their risk-rewards skewed to the downside."

Stanley says the stock is pricing in a gold price at $1,890/oz., or using spot prices and “working back” to the share price suggests the market is accounting for a discount rate of 1%.

However, the firm believes GOLD is best-in-class in the sector, with the lowest cost assets, a robust balance sheet and an excellent track record of developing gold mines while maintaining a strict capital allocation discipline.

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