Bank of America (BAC) and B. Riley FBR, Inc. maintained their ratings on shares of Newmont Mining Corp. (NEM, Financial).
The U.S. banking and financial services corporation set a price target of $49 per share of the U.S. gold stock, its highest over the last 15 months of trading. Bank of America’s target price represents a 27.5% upside from the current market valuation of the U.S. gold mining stock and a $5.37 hike from the average target price.
The average target price on Newmont Mining was $43.63 per share before Bank of America’s note on Monday to increase the target price.
B. Riley confirmed its previous neutral rating on Newmont Mining Corp. with a price target of $41 per share.
The target price, which has been confirmed by the Los Angeles-headquartered full service investment bank, is 6.7% beyond the current share price of Newmont Mining but below the average target price per share as of Feb. 23.
B. Riley FBR’s decision to keep its rating and price target may have been sparked by various factors , including the company’s guidance on full fiscal 2018 gold output of 4.9 million to 5.4 million ounces, which is almost flat from full fiscal 2017 level, plus an all-in sustain cost (AISC) that at $965 to $1,025 per ounce is anticipated to be higher in 2018 (+4.4% to +11% from 2017).
Following the Bank of America and B. Riley predictions on the market value that Newmont Mining will hit within the following 52 weeks of trading, the new average target price should be in the neighborhood of $44 per share as a mean of 18 estimates. The limits of the range will be untouched with a low of $37 and a high price target of $50 per share.
Newmont Mining Corp. is currently trading at $38.44 per share and has gained 11.7% for the 52-weeks through Feb. 27, outperforming the Van Eck Vectors Gold Miners EFT (GDX, Financial) by more than 18%.
Some other indicators on Newmont Mining Corporation:
- The stock is trading above the 200, 100 and 50-SMA lines.
- The 52-weeks range is 31.42 to $42.04 per share.
- The market capitalization is approximately $20.51 billion.
- The price-book (P/B) ratio is 1.93 times versus an industry median of 2.05 times.
- The EV-to-Ebitda ratio is 8.57 times versus an industry median of 10.18 times.
- The Ebitda margin (ttm) is 35.4% versus an industry median of 23.7%.
- GuruFocus assigns a financial strength rating of 6 out of a total of 10.
- The Relative Strength Indicator (RSI 14-days) is 49.62 of a 20 to 80 range.
(Disclosure: I have no positions in any security mentioned in this article.)
