US stock futures edge lower after S&P 500 hits record high; PCE data in focus
Investing.com - Goldman Sachs downgraded Newmont Mining Corp. (NYSE:NEM) from Buy to Neutral on Tuesday, while slightly lowering its price target to $94.30 from $96.80. The gold mining giant, with a market capitalization of $66.2 billion, has shown remarkable strength this year.
The downgrade follows recent outperformance in Newmont Mining’s stock, with Goldman Sachs noting that valuations now appear "fairer versus peers" despite the company’s defensive business position. According to InvestingPro data, the stock has delivered an impressive 63.35% return year-to-date, trading at a P/E ratio of 13.65.
Goldman Sachs highlighted that cost improvements for the gold mining company remain a "2-3 year story," suggesting that efficiency gains will take time to materialize fully.
The investment bank had previously expected Newmont to maintain its position as "the more defensive Australian large cap gold exposure" heading into June-quarter operating results, compared to other companies in the sector.
Goldman Sachs also noted that as peer companies begin to provide guidance for fiscal year 2026, Newmont’s relative defensive advantage "may partially unwind" in the market. Based on InvestingPro Fair Value analysis, the stock currently appears slightly undervalued.
In other recent news, Newmont Mining Corp reported a strong performance in the first quarter of 2025, surpassing earnings expectations with an earnings per share (EPS) of $1.25, compared to the forecasted $0.88. The company also exceeded revenue projections, reporting $5.01 billion against the anticipated $4.57 billion. Newmont’s robust financial performance was bolstered by higher-than-anticipated sales and favorable pricing, contributing to a record free cash flow of $1.2 billion. Additionally, Newmont completed its divestment program, adding $2.5 billion in net cash, which strengthened its balance sheet. Analyst firms Raymond (NSE:RYMD) James and BMO Capital Markets raised their price targets for Newmont to $67 and $64, respectively, while maintaining an Outperform rating. Newmont also announced the promotion of Natascha Viljoen to President and Chief Operating Officer, a strategic move following the integration of Newcrest. The company remains focused on maintaining its production levels and managing costs effectively in the coming quarters.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.