10:44 AM EST, 12/11/2017 (MT Newswires) -- Though they have underperformed gold thus far in 2017, Desjardins Securities analyst Josh Wolfson said his outlook for gold equities going forward is "neutral," believing their valuation is currently fair, the Globe & Mail reported.

In a research report released Monday, Wolfson initiated coverage of 16 gold producers and royalty companies, linking their fortunes closely with monetary policy.

Wolfson gave a buy rating to Agnico Eagle Mines (AEM.TO) with a $60 target. The analyst average target is $68.69, according to Bloomberg data. AEM shares were off 1% in early trading at $54.38.

"In our view, Agnico Eagle is a unique operator that is focused on predictability and emphasizes long-term returns," said Wolfson. "We believe a key challenge for investors in analyzing Agnico Eagle is the company's culture of conservatism, where guidance and project forecasts at the surface seem uninspiring. However, on a five-year-trailing basis, we calculate that Agnico Eagle has achieved production results that are on average 12% above guided levels when initially issued (typically 2-3 years prior), or 8% when evaluating achieved results versus guidance for the same year. Furthermore, we note Agnico Eagle's investment returns have also outperformed expectations."