Stock Price & Analysis

Buy AEM stock as it is well-positioned to benefit from the current gold market rally, with strong technical momentum and favorable fundamentals.

AEM stock is predicted to reach $110 in 2025, driven by strong financial performance and exploration success. The stock is currently trading at $104.1 with bullish MACD signals and Fibonacci support levels. Analysts have raised targets, with some expecting up to $116.

The S1 support level for AEM Stock is $103.43 ,The R1 resistant level for AEM Stock is $109.33.

As of the end of day on 2025-04-02, the price of AEM Stock was $108.49.

The target price for AEM Stock according to analyst rating is 112.54, with the highest price target at 132.73 and the lowest at 105.00. Analysts have a Strong Buy rating on AEM Stock overall.

The market cap of AEM is $54.5B.

Analysis and Insights

Agnico Eagle Mines Ltd (AEM) appears to be overvalued based on its current valuation metrics and market sentiment. Here's the analysis:

1. Valuation Metrics:

   • P/E Ratio: AEM's price-to-earnings ratio is 18.97, higher than the industry average of 16, indicating a premium valuation.
   • EV/EBITDA: The enterprise value-to-EBITDA ratio is 7.98, above the industry average of 6.5, suggesting the stock is trading at a higher multiple compared to peers.

2. Financial Performance:

   • Revenue Growth: AEM has shown consistent revenue growth in 2024, with Q4 revenue reaching $2.24 billion, up from $1.83 billion in Q1.
   • Net Income: Net income has also improved, though it dipped slightly in Q4 to $509.26 million from $567.12 million in Q3.
   • Margins: Gross margin is stable at 45%, but net margin is lower at 22.9%, reflecting higher operating costs.

3. Market Sentiment:

   • Analysts have mixed views. Scotiabank raised its price target to $105 but prefers streamers over operators due to cost pressures. Jefferies maintains a Hold rating with a lower price target of $88, citing gold price support but slower growth.

4. Recent Developments:

   • AEM's investment in Collective Mining for $63.4 million and its acquisition of Kirkland Gold highlight its growth strategy, but these moves have not yet significantly boosted the stock price.

Given these factors, AEM's valuation appears stretched compared to industry peers, and its stock may be overvalued at current levels.

Agnico Eagle Mines Limited is a Canada-based gold mining company engaged in producing precious metals from operations in Canada, Australia, Finland and Mexico. It has a pipeline of exploration and development projects in these countries as well as in the United States. Its operations include Canadian Malartic Complex, Detour Lake, Fosterville, Goldex, Kittila, La India, LaRonde Complex, Macassa, Meadowbank Complex, Meliadine and Pinos Altos. Its exploration site includes Anza, Barsele, Delta, Douay/Joutel, Kirkland Lake Regional, Kuotko, Hope Bay/ Oro, Monument Bay and others. The Canadian Malartic Complex is located over 25 kilometers (km) west of Val-d’Or in northwestern Quebec, Canada. The Detour Lake operation is located in northeastern Ontario, over 300 km northeast of Timmins and 185 km by road northeast of Cochrane, within the northernmost Abitibi Greenstone Belt. The Fosterville mine is a high-grade, low-cost underground gold mine, located 20 km from the city of Bendigo.

AEM stock is predicted to reach $125 by 2030, driven by its strategic investments in growth projects and the bullish outlook for gold miners amid rising gold prices.

AEM has a total of 10155 employees.