So far in this series, we’ve analyzed gold miners’ key operating and financial metrics.
In this article, we’ll look at the market sentiments for these companies. We’ll look at analysts’ recommendations, target prices, and potential upsides or downsides for these gold miners.
Analysts are turning optimistic
Among the senior gold miners under review (GDX) (GDXJ), analysts are most optimistic about Goldcorp (GG). It has the most “buy” ratings at 70%, with only 5% “sell” ratings. A year ago, only 40% of analysts had “buy” ratings on the stock. Analysts are most likely attracted to the company’s long-term approach to increasing its reserves and production and improving its unit costs. It has a potential upside of 62.0% based on its consensus target price.
Newmont Mining (NEM) ranks second in terms of “buy” ratings, with 56% of analysts recommending “buys” on its stock. The company’s focus on debt reduction and the strong execution of its project pipeline are the likely reasons for analysts’ positive outlook.
Kinross Gold (KGC) comes in third with 50% “buy” ratings from the 18 analysts covering the stock. Analysts have been happy about KGC’s prospects, but recent geopolitical concerns—especially those related to its Tasiast Phase Two expansion in Mauritania—have caused some concern. KGC has an upside potential of 65% based on its current target price and stock price.
The sentiment for Barrick Gold (ABX) has been quite negative lately. It currently has “buy” ratings from only 4% of analysts compared to 42% a year ago. Its mine issues in Argentina and Tanzania are affecting the sentiments for its stock. Its latest production and cost performance also disappointed analysts and investors.
For more on analysts’ sentiments toward gold miners, read Five Gold Stocks Analysts Love—and Five They Don’t.