Newmont Stock Rises After Scotiabank Raises Price Target by 33%
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Price Target Increase: Scotiabank raised Newmont's price target by 33% to $152 per share, resulting in a 2.6% stock price increase on Monday morning, reflecting strong market confidence in the stock.
- Surging Gold Prices: Gold prices surpassed $5,000, reaching $5,070.70 per ounce, up over 83% year-over-year, which is a positive indicator for Newmont as it suggests significant future revenue growth potential.
- Enhanced Competitive Position: Newmont has the right of first refusal to acquire Barrick Mining's North American assets, particularly its main Nevada Gold Mines project, which could prevent a competitor's asset spin-off and strengthen Newmont's market position.
- Strong Financial Performance: Newmont's revenue surged by 20% last quarter, with earnings nearly doubling, and with expected annual growth of over 58% in the next five years, the company is well-positioned to capitalize on rising gold prices, attracting investor interest.
Analyst Views on NEM
Wall Street analysts forecast NEM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for NEM is 110.85 USD with a low forecast of 89.00 USD and a high forecast of 125.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
11 Buy
3 Hold
0 Sell
Strong Buy
Current: 125.920
Low
89.00
Averages
110.85
High
125.00
Current: 125.920
Low
89.00
Averages
110.85
High
125.00
About NEM
Newmont Corporation is a gold company and a producer of copper, zinc, lead, and silver with operations and/or assets in the Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea regions. The Company's operations include Brucejack, Red Chris, Penasquito, Merian, Cerro Negro, Yanacocha, Boddington, Tanami, Cadia, Lihir, Ahafo, and NGM. The Brucejack operation includes four mining leases and six core mineral claims which cover 8,169 acres (3,306 hectares) and 337 mineral claims covering 298,795 acres (120,918 hectares). The Red Chris operation includes five mining leases which cover 12,703 acres and 199 mineral claims, encompassing an area of 164,903 acres (66,734 hectares). Penasquito includes 20 mining concessions for operations comprising 113,231 acres (45,823 hectares) and 60 mining concessions for exploration of 107,456 acres (43,486 hectares). The Merian operation includes one right of exploitation encompassing an area of 41,687 acres (16,870 hectares).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
