Macquarie downgrades Newmont stock to Neutral on recent outperformance

Published 02/09/2025, 09:14
Macquarie downgrades Newmont stock to Neutral on recent outperformance

Investing.com - Macquarie downgraded Newmont Mining Corp. (NYSE:NEM), the $81.7 billion market cap gold mining giant, from Outperform to Neutral with a price target of $72.00 on Tuesday. According to InvestingPro data, the company maintains an impressive "GREAT" financial health score.

The downgrade follows a 35% increase in Newmont’s stock price over the past three months, which significantly outperformed its peers in the gold mining sector. InvestingPro analysis indicates the stock is currently overbought, trading near its 52-week high of $74.52, with a remarkable YTD return of 102%.

Macquarie noted that Newmont, the world’s largest gold miner, has completed several strategic phases recently, including integrating the NCM business, renationalizing its portfolio, divesting non-core assets, and stabilizing its operations.

The company’s current portfolio consists of 11 operations and three development projects across various jurisdictions, providing operational diversification that had previously been viewed favorably by Macquarie.

Macquarie had upgraded Newmont in late June due to lower guidance risk compared to competitors and portfolio diversification, but now considers the stock’s recent outperformance as having fulfilled that investment thesis.

In other recent news, Newmont Corporation has made several noteworthy moves. The gold mining giant is implementing significant job cuts as part of a cost-reduction strategy following its $15 billion acquisition of Newcrest Mining Ltd. In a positive development, Moody’s Ratings has upgraded Newmont’s backed senior unsecured ratings to A3 from Baa1, citing improvements in credit metrics and liquidity. Additionally, Newmont has received a $100 million payment after Ghana ratified the renewal of the Akyem East Mining Lease, which is part of its divestment agreement with Zijin Mining Group. This payment contributes to the total after-tax cash proceeds from the Akyem sale, which now stand at approximately $770 million. Furthermore, Newmont has sold its entire stake in Orosur Mining for approximately C$5.6 million, marking its exit from the company. Meanwhile, Newmont’s stock saw a 1% increase in premarket trading after U.S. tariffs targeted certain gold bars. These developments reflect Newmont’s ongoing efforts to optimize its operations and financial standing.

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