UBS lifts Newmont Mining stock rating to buy, target to $60

On Friday, UBS analyst Daniel Major upgraded Newmont Mining Corp. (NYSE: NYSE:NEM) stock rating from Neutral to Buy, also raising the price target to $60 from the previous $50. The upgrade aligns with broader analyst sentiment, as InvestingPro data shows four analysts have recently revised their earnings estimates upward. Currently trading at $50.94, Newmont appears undervalued according to InvestingPro's Fair Value model. Major's upgrade comes with a positive outlook on the gold market, anticipating a supportive macroeconomic environment for the precious metal.

The analyst's commentary highlighted that, similar to past major economic disruptions, gold and gold equities are experiencing a rally after an initial sell-off. This trend is reflected in Newmont's strong performance, with InvestingPro showing a 15.3% return in the past week and an impressive 37.67% YTD gain. Major predicts a favorable macro backdrop for gold, leading UBS to increase its gold price forecast to $3,500 per ounce by 2026.

Newmont Mining has lagged behind the gold price and the Gold Miners Index (GDX (NYSE:GDX)) by approximately 40% over the past five years. This performance has resulted in the company's valuation falling from an average of approximately 8 times to around 6 times at the current spot price.

Looking forward, Major believes that Newmont Mining's guidance for 2025 is achievable and will likely result in positive operational momentum compared to current low expectations. He anticipates that upgrades to consensus gold price forecasts will contribute to positive earnings momentum for the company.

Additionally, the analyst foresees material cash returns in 2025, which should be sustainable into 2026 if the gold price remains strong. This outlook appears well-supported, given Newmont's strong financial position with moderate debt levels and 55 consecutive years of dividend payments. The company's robust revenue growth of 58.16% and healthy EBITDA of $8.86 billion further reinforce this positive outlook. This outlook is based on the belief that a "stronger for longer" gold price environment will support the company's financial performance. For deeper insights into Newmont's financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Nemechek SE reported strong financial results for Q1 2025, with total revenue reaching €996 million, driven by a 14% organic growth rate. The company's Annual Recurring Revenue (ARR) surged by 41.9%, indicating a robust demand for its digital solutions. EBITDA grew by 16.8%, with a margin of 30.2%, as the company continues to benefit from its strategic expansions, including the acquisition of GoCanvas. The company has set a revenue growth guidance of 17-19% for 2025, supported by its ongoing investments in AI, cloud features, and international market expansion. Nemechek SE's Build segment is expected to grow by over 20%, reflecting the company's strong performance in transitioning to a subscription and SaaS-centric business model. Additionally, the integration of GoCanvas is progressing as planned, with positive feedback from large channel partners. The company also opened a new office in India, aiming to tap into the significant growth potential of the Indian construction market. Despite global challenges, Nemechek SE remains confident in its growth trajectory, driven by its diversified and resilient business model.

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