Why Kinross Gold Corporation Might be Ready to Rebound

While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of Kinross Gold rallied 3% today after Goldman Sachs upgraded the gold miners from sell to neutral.

So what: Along with the upgrade, analyst Andrew Quail planted a price target of C$4.20 on the stock, representing about 6% worth of downside to yesterday's close. So while momentum traders might be turned off by Kinross' sharp price decline in recent weeks, Quail's upgrade could reflect a growing sense on Wall Street that the company's prospects are becoming too cheap to pass up.

Now what: According to Goldman, Kinross' risk/reward trade-off is steadily improving relative to other gold plays. "We upgrade our rating on Kinross to Neutral (from Sell) following the stock's recent share price decline," said Quail. "Our Neutral rating also reflects that we see greater downside potential elsewhere in our sector coverage." So while Kinross remains just too speculative for average investors, its beaten down stock price might be something for risk-tolerant contrarians to consider.

6 stock picks poised for incredible growth
They said it couldn't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

The article Why Kinross Gold Corporation Might be Ready to Rebound originally appeared on Fool.com.

Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.