Agnico Eagle Mines Ltd (USA) AEM 0.86% has had quite a run so far in 2016, but RBC Capital analyst Stephen Walker believes the party is now over for the gold miner. RBC Capital had downgraded Agnico Eagle from Outperform to Sector Perform following a more than 120 percent gain so far this year.

According to Walker, the downgrade is about the stock’s valuation, not the company’s performance.

“The shares appear to be currently pricing in the recent favourable guidance revision as well as the expected Q4/16 and year-end reserve additions,” Walker explained.

He noted that the company has consistently met or exceeded production targets, but this strong execution is already priced into the stock’s premium valuation.

Despite the downgrade, RBC upped its price target for the stock slightly from $65 to $67.

Looking ahead, Walker expects…

Click here to continue reading

Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!