Do Newmont Mining’s Latest Ratings Show Analyst Optimism?


Nov. 20 2020, Updated 1:46 p.m. ET

Analyst ratings

Newmont Mining (NEM) has 61% “buy” recommendations from the 18 analysts covering the stock. While 33% have issued “hold” recommendations for the stock, only 6% recommend a “sell” for the stock. Its target price implies an upside of 4.5% from its current market price of $38.80.

After disappointing investors in 1Q17 due to an upward revision in unit costs for the next two years, Newmont Mining seems to be back on track with debt reduction and cost reduction.

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Newmont Mining’s (NEM) latest rating change was an upgrade from Argus on July 27, 2017. Argus upgraded NEM from “hold” to “buy” with a target price of $43. The firm’s analyst thinks that NEM’s current valuation is attractive and expects the company to benefit from the positive fundamentals of the gold industry.

Just a day before this upgrade, TD Securities boosted NEM’s target price by 39% to $50.00. The firm has a “hold” rating on the stock.

On the same day that TD Securities boosted its target price for NEM, Scotiabank also upped NEM’s target price from $43.50 to $55.00. Scotiabank had previously upgraded Newmont from “sector perform” to “outperform” on July 5, 2017.

Other rating changes

On June 15, 2017, Raymond James initiated coverage of NEM with an “outperform” rating and a target price of $43.00. Analyst Brian MacArthur believes that Newmont Mining meets the criteria of a strong investment opportunity in the gold space. This view is mainly premised on the company’s favorable jurisdictional exposure and strong balance sheet and cash position. Raymond James’s analysts think that NEM can use its cash position to expand its portfolio.

Newmont Mining is listed on the S&P 500 (SPY) (SPX). Raymond James is also bullish on Kinross Gold (KGC), Agnico Eagle Mines (AEM), Alamos Gold (AGI), and Detour Gold (DRGDF).


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