Raymond James cuts Barrick Gold price target to $23

On Friday, Raymond (NSE:RYMD) James made an adjustment to the price target for Barrick Gold Corp. (NYSE: NYSE:GOLD), bringing it down to $23.00 from the previous $24.00. Despite this reduction, the firm maintained its Outperform rating on the mining company's stock. According to InvestingPro data, the stock has shown significant momentum with an 8.22% return over the past week, while maintaining a moderate P/E ratio of 14.87.

The adjustment came with an analysis from Raymond James, highlighting Barrick Gold's significant control over high-quality gold mines and copper assets, which are instrumental in generating strong cash flow for the company. The analyst, Brian MacArthur, noted the strategic impact of the no-premium transaction with Randgold (LON:RRS), which brought additional tier-one assets and free cash flow to Barrick's portfolio. However, he also pointed out that this deal increased the company's jurisdictional risk due to Randgold's extensive African operations. InvestingPro analysis shows the company maintains strong financial health with a GREAT overall score, supported by robust cash flows and a 39-year track record of consistent dividend payments.

Moreover, MacArthur mentioned the joint venture (JV) with Newmont in Nevada, emphasizing its role in consolidating management of the world's largest gold complex. He suggested that this JV presents an opportunity to create meaningful synergies for Barrick Gold.

Barrick Gold, which is known for its robust portfolio in the gold mining sector, has been working to optimize its operations and expand its asset base. The company's strategic moves, such as the partnership with Randgold and the Nevada JV, are seen as efforts to enhance its market position and financial performance.

The revised price target reflects the analyst's view of the company's prospects, taking into account both the strengths of Barrick's asset base and the potential risks associated with its international operations. Despite the slight decrease in the price target, the Outperform rating indicates a positive outlook on the stock's potential to perform well in the market.

In other recent news, Barrick Gold Corporation reported its fourth-quarter earnings, which were in line with analyst expectations, while its revenue fell below estimates. The adjusted earnings per share stood at $0.46, matching the consensus estimate put forth by analysts. However, the revenue was reported at $3.65 billion, falling short of the anticipated $3.65 billion.

In addition to the earnings report, Barrick Gold also announced a quarterly dividend of $0.10 per share and reported that it had repurchased 28.675 million shares under its buyback program in 2024. Notably, the gold production for the quarter was slightly above the estimated 1.05 million ounces, reaching 1.08 million ounces.

As part of its recent developments, Barrick Gold emphasized its commitment to maintaining a robust balance sheet while investing in growth projects. These developments highlight the company's strategic moves despite the revenue miss, as stated by Graham Shuttleworth, senior executive vice-president and chief financial officer.

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