Stifel initiates coverage on Newmont Mining stock with Buy rating

Investing.com - Stifel has initiated coverage on Newmont Mining Corp. (NYSE:NEM) with a Buy rating and a $73.00 price target, citing the company’s position as the world’s largest gold producer. The stock, currently trading near its 52-week high of $60.31, has delivered impressive returns with a 55% gain over the past six months. According to InvestingPro analysis, Newmont appears undervalued based on its Fair Value calculations.

The research firm highlights Newmont’s operational stabilization, noting the company is well positioned to meet its 2025 milestones following the successful Newcrest acquisition and its divestiture program. The company maintains strong financial health with a current ratio of 1.98 and operates with moderate debt levels. InvestingPro data reveals the company has maintained dividend payments for 55 consecutive years, demonstrating consistent operational stability.

Stifel identifies medium-term catalysts for Newmont, including expected improvements in 2026 and 2027 as operations at Boddington, Lihir, Peñasquito, and Cerro Negro stabilize, alongside the commissioning of the Ahafo North shaft in 2027 and the build-out of Panel Caves 2 and 3 at Cadia in 2026 and 2027.

The firm also points to Newmont’s active shareholder return program, which includes $2.0 billion in dividends and share repurchases, with $755 million already distributed through April 2025.

Stifel’s price target is based on a blended weighting of 1.40x P/NAV ($55.30/share) and 7.0x FY26E/27E EV/EBITDA estimates, while Newmont currently trades at 1.08x P/NAV and 7.4x on FY26E EV/EBITDA.

In other recent news, Newmont Mining Corp reported impressive first-quarter 2025 earnings, significantly surpassing analyst expectations. The company achieved an earnings per share of $1.25, well above the forecasted $0.88, and generated revenue of $5.01 billion, exceeding the anticipated $4.57 billion. Newmont also recorded a substantial free cash flow of $1.2 billion, contributing to its strong financial performance. In addition, Newmont completed a major divestment program, adding $2.5 billion in net cash to its balance sheet. On the corporate front, Newmont appointed Natascha Viljoen as President and Chief Operating Officer, a strategic move to enhance leadership as the company focuses on cost improvements and productivity. Analyst firms have been adjusting their outlook on Newmont, with Raymond (NSE:RYMD) James raising the stock’s price target to $67 while maintaining an Outperform rating, and BMO Capital Markets increasing their target to $64, also with an Outperform rating. Conversely, Goldman Sachs downgraded Newmont to Neutral, citing fair valuation after recent stock outperformance. These developments reflect Newmont’s dynamic position in the market and its ongoing efforts to optimize operations and financial health.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.