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The Word on the Street: What Analysts Are Saying about AngloGold Ashanti

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Nov. 20 2020, Updated 5:10 p.m. ET

Analyst recommendations

According to Bloomberg, about 59% of analysts covering AngloGold Ashanti (AU) have given it “buy” recommendations. About 24% of analysts have issued “hold” recommendations, and 18% have issued “sell” recommendations on the stock.

Over the years, we’ve seen the company’s share price move in line with analyst recommendations. Its consensus target price now stands at 28.8 South African rand, or about $2.02, implying a potential downside of 1% from its current market price of 29.1 rand, or about $2.05.

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Other gold mining company ratings

Among South African gold mining companies, AngloGold Ashanti remains the analysts’ favorite, with the highest percentage of “buy” recommendations at 59%. Harmony Gold (HMY) and Gold Fields (GFI) have the lowest percentage of “buy” recommendations, at 36% and 40%, respectively.

Sibanye Gold (SBGL) has “sell” ratings from 7% of analysts. The graph above shows brokers’ recommendations and the percentage of upsides or downsides from current prices.

Recent ratings changes

Deutsche Bank (DB) downgraded AngloGold from “buy” to “hold” while upgrading Harmony Gold from “hold” to “buy.” For AngloGold, DB believes that the valuation and the risk-to-reward outlook justifies a “hold” rating. DB maintained its “hold” rating for Gold Fields and Sibanye Gold in the same note.

Investors looking to invest in gold might also look at leveraged ETFs like the Direxion Daily Junior Gold Miners Bull 3X ETF (JNUG) and the Direxion Daily Gold Miners Bull 3X ETF (NUGT).

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