Barclays on Goldcorp: 30% Upside from Its Current Level



Barclays on Goldcorp

According to Barclays (BCS), Goldcorp (GG) has the potential to provide nearly 30% upside from its closing price of $13.80 on June 23, 2017. The firm has provided a price target of $18 for the stock.

Goldcorp mines for various metals such as gold (GLD), silver, and zinc in Mexico (EWW), the United States (QQQ) (SPY), and Canada (EWC). In the last one year, Goldcorp has had a low correlation with gold prices, which means it hasn’t fluctuated a lot with gold price movement.

Barclays wrote, “GG offers the market a profile of solid production growth and lower all-in sustaining costs (or AISC) over the next five years that outpace the aspirations of several of its peers. We believe that these goals are achievable.”

Goldcorp’s performance

Goldcorp is currently trading at $13.37. Its 52-week high is $20.38, and its 52-week low is $11.91. The stock dropped nearly 4.5% on a year-to-date basis, as of June 27, 2017. The stock provided negative earnings growth both in 2014 and 2015. In 2016, the earnings growth showed a marginal improvement. The VanEck Vectors Junior Gold Miners ETF (GDXJ) and the SPDR Gold Shares (GLD) fell nearly 28.6% and 10.3%, respectively, in the past year.

In the next part of this series, we’ll analyze Barclays’ view on United Continental Holdings (UAL).

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