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How Are Analysts Currently Rating Newmont Mining?

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Analyst ratings

Of the 19 analysts covering Newmont Mining (NEM), 12 have issued “buy” recommendations and seven have issued “hold” recommendations on the stock.

Notably, Newmont makes up 6.1% of the holdings of the VanEck Vectors Gold Miners ETF (GDX). The SPDR Gold Shares ETF (GLD) provides exposure to spot gold prices.

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Target price changes

Analysts have given the company a consensus target price of $42.3 compared to its current market price of $31.7. This target implies an upside potential of 29%.

In keeping with the company’s share price appreciation to date, analysts have raised their consensus target price for the stock by 103% since the start of the year.

Upgrades and downgrades

Credit Suisse (CS) cut its target price from $53 to $51 while maintaining its “outperform” rating. The broker believes that the company’s project pipeline is better than expected. Newmont is its top pick, mainly due to the company’s “operational consistency, attractive relative valuation and strong track record of adding to its net asset value.” Citigroup (C) cut its recommendation from “buy” to “neutral” and cut its target price from $44 to $34.

JPMorgan Chase (JPM), on the other hand, upgraded Newmont from “neutral” to “overweight,” while increasing its target price from $41 to $43 on November 3, 2016. JPM’s rationale for the upgrade was: “We feel Newmont has lagged the sector at a time when investors should be taking another look at gold, given the increased interest in the metal in part on political uncertainty ahead of next week’s election.” Investors should, however, note that this upgrade came before the recent bout of weakness had hit gold. Trump’s win was expected to be a win-win situation for gold, but it didn’t quite turn out that way.

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