Analyst Picks of the Week

The following resource companies were mentioned by analysts during the week of October 1 to 7. This information, to be used for the purpose of evaluating potential investments, was distilled from a daily list of analyst upgrades, downgrades and initiations compiled by Analyst Ratings Network.

• Duke Energy Corp. (NYSE:DUK) is one of the largest electrical power companies in the United States, with about 57,700 megawatts of generating capacity in the Carolinas, the Midwest and Florida.  The company also has natural gas distribution services in Ohio and Kentucky. Duke Energy was upgraded by analysts at Deutsche Bank from a “hold” rating to a “buy” rating. They now have a $74.00 price target on the stock. 10.8 percent upside. Duke Energy closed at $66.34 on Monday in New York.

• Forest Oil Corp. (NYSE:FST) is an oil and gas company that operates in three core areas of the US: the Texas Panhandle, The Eagle Ford Shale in South Texas, and the Ark-La-Tex Area of East Texas / North Louisiana. Earlier this month Forest Oil sold its oil and gas assets in the Texas Panhandle to Templar Energy LLC for $1.0 billion. Forest Oil was downgraded by analysts at Societe Generale from a “buy” rating to a “hold” rating. They now have a $7.00 price target on the stock, down previously from $9.00. 14.8 percent upside. Forest Oil closed at $5.29 on Monday in New York.

• Barrick Gold Corp (NYSE:ABX, TSX:ABX) is the world’s largest gold producer by number of ounces produced. This year Barrick is maintaining guidance of 7 to 7.4 million ounces at a cost of $900 to $975 per ounce. On October 1st Barrick completed the sale of its Yilgarn South assets in Western Australia to Gold Fields Limited (NYSE:GFI) for $300 million. Barrick was upgraded by analysts at Deutsche Bank from a “hold” rating to a “buy” rating. They now have a $30.00 price target on the stock, up previously from $20.00. 66.4 percent upside. Barrick Gold closed at $18.28 on Monday in New York.

• Golden Minerals Co. (TSX:AUM) owns the Velardeña Mining Operations in Durango State, Mexico, the El Quevar silver project in the Salta province of northwestern Argentina, and a portfolio of precious metals exploration properties located in or near historical precious metals producing regions of Mexico and South America. Total resources are estimated at approximately 64.6 million silver equivalent ounces in the measured and indicated category, plus an additional 65.8 million silver equivalent ounces in the inferred category. Golden Minerals is now covered by analysts at Roth Capital. They set a “neutral” rating and a $1.00 price target on the stock. 7.3 percent upside. Golden Minerals closed at $0.97 in Toronto on Monday.

• Northern Tier Energy (NYSE:NTI) is a downstream energy company with refining, retailing and pipeline operations that serve the PADD II region of the United States. The company refines 89,500 barrels a year from its refinery in St. Paul Park, Minnesota. Northern Tier Energy was upgraded by analysts at Credit Suisse from a “neutral” rating to an “outperform” rating. They now have a $29.00 price target on the stock, up previously from $28.00. 41.3 percent upside. NTI closed at $21.19 in New York on Monday.

• Exxon Mobil Corp. (NYSE:XOM) is the world’s larget publicly traded oil and gas company. On Monday Exxon Mobil announced that it has selected a site in the Nikiski area on the Kenai Peninsula for the proposed Alaska LNG project’s natural gas liquefaction plant and terminal. Exxon Mobil was upgraded by analysts at Raymond James from an “outperform” rating to a “strong-buy” rating. They now have a $98.00 price target on the stock. 14.6 percent upside. Exxon Mobil closed at $85.90 in New York on Monday.

• Equal Energy Ltd. (NYSE:EQU, TSX:EQU) is an oil and gas company based in Oklahoma City. The company is focused on producing from the Hunter Trend, a carbonate rock formation that crosses the north of Oklahoma. Equal Energy is now covered by analysts at Dougherty & Co. They set a “buy” rating and a $16.00 price target on the stock. 78.6 percent upside. Equal Energy closed at $4.72 on Monday in New York.

• AuRico Gold (NYSE:AUQ, TSX:AUQ) has 6.814 million ounces in proven and probable reserves, from four operations in North America: Kemess, Young-Davidson, El Chanate and Orion. Aurico Gold was upgraded by analysts at Credit Suisse from a “neutral” rating to an “outperform” rating. They now have a $5.00 price target on the stock, down previously from $5.50. 34.4% upside. Aurico Gold closed at $3.91 in New York on Monday. 

• Osisko Mining Corp (TSX:OSK) is a mid-tier gold producer that operates the Canadian Malarctic gold mine in Quebec, Canada. Production at Malarctic began in May 2011. The mine is destined to become one of Canada’s biggest gold mines, with proven and probable reserves of 10.1 million onces. Osisko as upgraded by analysts at CSFB from a “neutral” rating to an “outperform” rating. They now have a C$7.00 price target on the stock, up previously from C$6.00. 40.0 percent upside. Osisko closed at $5.35 on Monday in Toronto.

• Castle Mountain Mining (TSXV:CMM) is focused on reopening the past-producing Castle Mountain gold mine in San Bernadino County, California. In September the company announced a private placement of C$350,000 through the sale of a million units at a purchase price of $0.35 per unit. Castle Mountain Mining is now covered by analysts at Canaccord Genuity. They set a “speculative buy” rating and a C$0.50 price target on the stock. 25.0 percent upside. Castle Mountain Mining closed at $0.40 on the TSX Venture on Monday. 

Securities Disclosure: I, Andrew Topf, hold no direct investment interest in any company mentioned in this article. 

Analyst Picks of the Week: Energy Stocks (Sept. 24-30)