Jefferies Reaffirms Buy On Agnico-Eagle Mines (AEM)

Jefferies & Co. is reaffirming its Buy rating and $90 price target on shares of Agnico-Eagle Mines AEM. In a note to investors, Jefferies writes, "While Agnico Eagle management provided better details surrounding reduced output and added expenses generated by the fire's aftermath, we believe that the outlook for Meadowbank's future remains bright and that the shares, which have lagged during Q1, provide value at current levels. Shares should better reflect record gold prices, in our view, as Agnico remains one of the highest growth metal vehicles. Meadowbank has been operating with reduced workforce and production rate since the fire. AEM has been processing lower grade stockpile at its mill in the mean-time. Meadowbank is expected to return to its normal operations in second quarter 2011." Shares of AEM closed at $66.20 yesterday.