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How Analysts Reacted to Goldcorp’s 2Q16 Results

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Aug. 3 2016, Updated 10:05 a.m. ET

Wall Street ratings

Goldcorp (GG) reported a weaker-than-expected 2Q16, but it maintained its production and cost outlook. Now let’s look at Wall Street’s reaction after the company released its results.

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Ratings compared to peers 

Goldcorp has 44% “buy” recommendations from analysts, the same as Newmont Mining (NEM) and Yamana Gold (AUY). Agnico Eagle Mines (AEM) and Barrick Gold (ABX) have more “buys,” at 50% and 46%, respectively.

Note that analysts’ bullishness for Goldcorp has corrected sharply in the last half year. At the beginning of 2016, 83% of analysts rated Goldcorp as a “buy.” In response to Goldcorp’s disappointing three-year forward production guidance and operational issues, analysts have pared back their estimates and ratings.

Analysts’ reactions

Mackie Research raised Goldcorp’s stock from a “hold” to a “buy” after the company released its 2Q16 results. It has a target price of $21.2 on the stock.

Another way to gain exposure to precious metals is by investing in ETFs such as the Global X Silver Miners ETF (SIL) and the iShares MSCI Global Gold Miners ETF (RING).

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