Uxin shares drop 45% as predicted by InvestingPro’s Fair Value model
Investing.com - TD Cowen has upgraded New Gold (NYSE:NGD) from Hold to Buy and significantly raised its price target to C$12.00 from C$7.50 following the proposed all-stock acquisition by Coeur Mining. The upgrade comes as New Gold shares have surged 23.7% in the past week and an impressive 236.69% year-to-date, according to InvestingPro data.
The substantial price target increase represents a 60% jump from the previous target, reflecting TD Cowen’s positive outlook on the transaction. Currently trading at $8.35, New Gold is considered slightly undervalued based on InvestingPro’s Fair Value assessment.
The upgrade is based on TD Cowen’s assessment that New Gold will likely be successfully acquired by Coeur Mining due to the premium multiple being offered in the deal.
The all-stock transaction features a 0.4959 share exchange ratio, with TD Cowen’s new target price for New Gold based on its $25 target price for Coeur Mining shares.
TD Cowen analyst Wayne Lam noted there is "limited likelihood of superior competing bid" emerging to challenge the current acquisition proposal.
In other recent news, Coeur Mining, Inc. has announced a significant acquisition, agreeing to acquire New Gold Inc. in an all-stock transaction valued at approximately $7 billion. This merger is set to create a leading North American precious metals producer, with Coeur shareholders owning about 62% of the combined entity and New Gold shareholders holding the remaining 38%. Following this announcement, Moody’s Ratings has placed both Coeur and New Gold on review for potential rating upgrades, reflecting the strategic significance of the merger.
New Gold recently reported impressive third-quarter results for 2025, exceeding analyst expectations with an earnings per share of $0.25 against a forecast of $0.17. The company’s revenue also surpassed projections, coming in at $462.5 million compared to the anticipated $416.26 million. These strong financial results underscore New Gold’s robust performance prior to the merger. The merger agreement includes a 16% premium for New Gold shareholders, based on the company’s closing price on October 31. These developments have generated considerable interest among investors and analysts alike.
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