HSBC has flagged dividend growth at Randgold Resources (LON:RRS), WebFG News reports. The comments came as the broker lifted its recommendation on the blue-chip miner.
Randgold’s share price, however, has fallen deep into the red in today’s session, alongside other blue-chip miners and as of 14:38 GMT stood 2.54 percent down at 6,056.00 points, underperforming the benchmark FTSE 100 index which currently stands 0.79 percent lower at 7,222.08 points. The group’s shares have lost about a fifth of their value over the past year, as compared with about a 0.5-percent rise in the Footsie.
HBSC bullish on Randgold Resources
HSBC lifted its stance on Randgold Resources from ‘hold’ to ‘buy’ today, while revising down its price target on the shares from 7,800p to 7,700p. WebFG News quoted the analysts as telling clients that they expect the blue-chip miner to hike its payout by 50 percent this year after the company reported record production and increased profits for its most recent trading year.
The broker elaborated that following a ‘somewhat pedestrian’ third quarter, Randgold had returned a ‘rock solid’ performance in the three months to December 31.
“We expect Randgold’s operational outperformance and unrivalled track record of discovering and developing high-quality assets in West and Central Africa to continue to set the group apart,” HSBC said, adding that over time, these qualities had “resulted in low volatility relative to peer group and earnings multiples that trade at sustained and substantial premia”.
Other analysts on blue-chip miner
Numis Securities reiterated its ‘add’ rating on Randgold earlier this week, while trimming its price target on the shares from 9,000p to 8,000p. According to MarketBeat, the blue-chip gold miner currently has a consensus ‘buy’ rating and an average price target of 7,736p.