Investor attention is increasingly turning towards precious metals miners as gold maintains historically elevated price levels. Against this backdrop of sustained strength in the commodity market, analysts are re-evaluating opportunities within the mining sector, seeking companies poised to capitalize on the favorable environment.
UBS Issues Favorable Rating for Newmont
Financial services firm UBS has upgraded its stance on Newmont Corporation (NEM), issuing a ‘Buy’ recommendation for the mining giant’s stock. Concurrently, UBS analyst Daniel Major raised the price target for NEM shares to $60, up from the previous target of $50.
Driving Factors: Gold Prices and Company Outlook
The positive revision is largely predicated on the performance of gold. UBS highlights a market context where the precious metal surpasses $3,200 per ounce amidst ongoing macroeconomic uncertainty, bolstering its status as a key defensive asset. UBS anticipates that Newmont’s operational guidance for 2025 is well within reach. Analyst Daniel Major projects this will foster positive operational momentum and lead to robust and sustainable cash returns for the company through 2025 and into 2026.
Market Performance and Valuation Context
Gold itself has demonstrated significant strength, posting gains exceeding 22% year-to-date, reinforcing its traditional role as a hedge against economic volatility and inflationary pressures. While Newmont’s stock has gained considerable ground recently, it had underperformed the metal over the past five years. This period of lagging performance, according to UBS, has resulted in a more attractive valuation for the miner at present. The positive outlook from UBS aligns with broader market sentiment; data from LSEG indicates that 12 out of 19 analysts covering Newmont currently hold a ‘Buy’ or ‘Strong Buy’ rating.
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