Is it possible that the view on gold mining stocks could be coming back in favor again? It turns out that 24/7 Wall St. witnessed key upgrades from different analysts on gold stocks of Goldcorp Inc. (NYSE: GG) and Newmont Mining Corp. (NYSE: NEM). These are among the larger players out there. Newmont has a market cap of almost $13 billion and Goldcorp has a market cap of almost $14 billion.
Source: Thinkstock
Goldcorp was maintained as an official Buy rating at TD Securities, but the gold giant was added as an Action List Buy with a whopping $29.00 price target. What stood out here was that this upgrade suggests an upside of about 80% from the closing price of $16.23. Shares were up 2% at $16.56 in mid-afternoon trading on Tuesday.
The driving forces behind the action-list focal point for Goldcorp werenear-term growth, a healthy balance sheet and lower geopolitical risk than other gold producers and miners. The recent $1 billion sale of its Tahoe stake also played a role on that balance sheet strengthening comment.
Goldcorp has a consensus analyst price target of $24.60 and a 52-week trading range of $16.18 to $29.65. This $29.00 is the highest analyst price target on Wall Street.
ALSO READ: 10 Stocks to Own for the Next Decade
Newmont Mining was reinstated as Outperform with a $30.00 price target (versus a $23.95 close) at Credit Suisse. Investors should keep in mind that Newmont recently closed on a common stock sale to Citigroup and JPMorgan that brought in net proceeds of $674 million.
Credit Suisse said that its net asset value is largely unchanged at $16.84 per share, from $16.96 per share, on the heels of its Cripple Creek & Victor sale on June 9 for $820 million in cash. Its optimizations could add about $254 million to the firm’s net asset value. The firm also sees an additional $100 million per year free cash flow.
Newmont’s shares were up almost 0.9% at $24.17, and the consensus price target is $27.50. Newmont’s 52-week range is $17.60 to $27.90.
As far as gold itself, gold continues to swing around the volatility in Europe. Gold was down again on Tuesday, at just under $1180 per ounce, after having been back just above $1,200 last week.
Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the
advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
