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How Analysts Rate Gold Miners amid Gold Price Volatility

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How Analysts Rate Gold Miners amid Gold Price Volatility PART 1 OF 10

What Do Barrick Gold’s Recent Rating Changes Mean for Investors?

Analysts’ ratings for Barrick

In this series, we’ll discuss gold miners’ analyst ratings and recommendations, starting with Barrick Gold.

Of the analysts covering Barrick Gold (ABX), 54% recommended a “hold,” 42% of its analysts issued “buy” recommendations, and 4% recommended a “sell” for the stock. This is in accordance with the consensus estimates compiled by Thomson Reuters.

What Do Barrick Gold’s Recent Rating Changes Mean for Investors?

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Overall, the company has disappointed investors in 2017 year-to-date due to the issues at its Tanzanian mines and Veladero mine in Argentina. These issues also resulted in a downward revision of its 2017 production guidance. Its target price of $20.07 represents a potential upside of 10.2% from its current market price.

Due to the recent buoyancy in gold prices (GLD), Barrick’s stock has gained positively, Its peers Yamana Gold (AUY), Newmont Mining (NEM), and Goldcorp (GG) have also seen gains in their stock prices recently.

Recent analyst changes

While it’s important to look at analyst ratings, recent changes to recommendations and target prices provide insight into the latest changes in the market sentiment for a stock.

Barrick Gold’s most recent rating change came from BMO Capital Markets on July 6, 2017. BMO downgraded the stock from “outperform” to “market perform.” The main reason cited for the downgrade was Acacia’s (Barrick’s subsidiary) pending conflict with the Tanzanian government. The firm reduced ABX’s target price to $18 from $21.

On June 29, 2017, Berenberg Bank upgraded ABX’s stock. The bank upgraded the stock from “sell” to “hold.” It that the downside is already priced into Barrick’s stock.

Other ratings

On September 7, 2017, RBC Capital Markets reiterated its “outperform” rating on Barrick Gold stock along with the target price of $21.

Citigroup (C) also reaffirmed its “buy” rating on ABX stock on September 6, 2017. On August 23, 2017, BMO Capital reaffirmed its “outperform” rating on Barrick Gold. The firm has a target price of $18 on the stock.

In the next article, we’ll look at analysts’ revenue and earnings estimates for Barrick Gold.

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