UPDATE: BMO Capital Markets Downgrades Turquoise Hill Resources on Negative Outlook

In a report published Monday, BMO Capital Markets analyst Tony Robson downgraded Turquoise Hill Resources (NYSE: TRQ) from Outperform to Market Perform, and lowered the price target from $10.00 to $5.50.

In the report, BMO Capital Markets noted, “BMO Research is downgrading Turquoise Hill Resources to Market Perform. RIO announced that development of the underground mine at Oyu Tolgoi is on hold, as the US$4B project financing package needs to be signed off by the Mongolian Parliament, adding another delay, with the time frame open. On operational updates, the stock no longer appears to offer a reasonable risk/reward profile, with many of its lower-risk peers trading on similar long-term multiples. Ongoing rhetoric between the Government of Mongolia and Rio Tinto (RIO-LSE, £29.21, Outperform) provides little to comfort investors.”

Turquoise Hill Resources closed on Friday at $5.32.