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Analysts Gave Sibanye and AngloGold the Most Buy Recommendations

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Jan. 19 2016, Updated 5:05 p.m. ET

Market sentiment

We’ve analyzed the key operating and financial metrics for gold miners so far. Now it’s time to see the market sentiment for these companies. In this article, we’ll discuss analysts’ recommendations, target prices, and potential upside for gold miners.

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Gold miner ratings

Many Wall Street analysts are constructive on the intermediate gold mining names as none of them have a “sell” recommendation for three out of the five companies discussed. These companies include AngloGold Ashanti (AU), Sibanye Gold (SBGL), and New Gold (NGD). Only 5% of analysts recommend a “sell” for Eldorado Gold (EGO) while 40% recommend a “sell” on Gold Fields (GFI).

Sibanye Gold and AngloGold have the highest percentage of “buy” recommendations at 67% and 60%, respectively.

Analyst rankings and target prices

Here’s a further breakdown of updated analyst recommendations and target prices:

  • Recently, HSBC and Scotiabank lowered their target prices for AngloGold Ashanti.
  • RBC Capital had initiated with a “hold” on Sibanye in December 2015. Deutsche Bank, on the other hand, upgraded Sibanye from “hold” to “buy” and raised its target price from $19 to $22 in November 2015.
  • Credit Suisse raised its target price for Eldorado from $3.3 to $3.8 while maintaining a “neutral” recommendation.
  • RBC Capital and National Bank Financial also maintained their “hold” recommendation for New Gold (NGD) in November.
  • In December 2015, RBC Capital downgraded Gold Fields from “buy” to “hold” while JPMorgan Chase reiterated its “hold” recommendation.

Investors can consider the VanEck Vectors Gold Miners Index (GDX) and the SPDR Gold Trust (GLD) to get exposure to gold miners and spot gold prices, respectively. AngloGold Ashanti forms 4.5% of GDX’s holdings.

Continue to the next and final part of this series for an evaluation of these intermediate gold mining companies’ current valuations.

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