UBS Sees a Bargain in Yamana Gold

4/5 - "UBS Securities analyst Tony Lesiak calculates that Toronto-based Yamana is trading at a 22% discount to the senior gold group average.

What’s going on? Mr. Lesiak figures that the stock is firmly caught in “show me” mode. Yamana has grown very fast in the last few years, and he believes that investors are concerned about earnings dilution from recent acquisitions and possible future ones. They also want to see more evidence that the company’s growth forecasts are achievable and that it can control costs."

"Yamana shares are currently trading in the $14 range, which is well below Mr. Lesiak’s prior target of $19.50. He is cutting his target to $19.00 to reflect more conservatism in his outlook. But with a huge disconnect between the current stock price and his target, he is upgrading it to “buy” from “neutral.”