Global Gold Demand And Asset Synergies Will Boost Future Resilience

Analysts have raised Newmont’s price target to $74.75 as stronger gold and copper price outlooks, improved asset stability, and advancing projects outweigh some valuation concerns, reflecting increased confidence in its near-term prospects.

Analyst Commentary

• Bullish analysts cite Newmont's recent underperformance versus peers as presenting a tactical buying opportunity with attractive relative value.
• Positive sentiment is driven by updated precious metals models post-Q2 reporting, supporting higher price targets based on stronger gold and copper price outlooks.
• Analysts expect value creation through advancing development projects, stabilization of the Tier 1 asset portfolio, and continuation of share repurchases.
• Some bearish analysts point to limited valuation upside after recent stock outperformance, with sector-relative valuations now appearing fair and cost improvements seen as a longer-term (2-3 year) story.
• Increased exposure to gold and copper—especially amid heightened supply stresses and under-ownership in copper—is highlighted as a key driver for upside, though some remain neutral due to valuation concerns.

What's in the News

• Newmont is considering significant job cuts as part of a cost reduction drive following its $15B acquisition of Newcrest Mining in 2023 (Bloomberg).
• Newmont shares are seen as undervalued, trading at 13x P/E, and offer strong earnings and record free cash flow amid climbing gold and silver prices (Barron's).
• The stock is highlighted as a solid option for investors seeking exposure to rising precious metals, even though production growth may not match junior miners (Barron's).
• The White House intends to issue an executive order clarifying that imports of gold bars will not be subject to tariffs after initial confusion, which could impact Newmont and gold markets (Bloomberg).
• Policy clarification on gold tariffs comes after government surprise actions caused market uncertainty, aiming to correct misinformation regarding gold and specialty product imports (Bloomberg).

Valuation Changes

Summary of Valuation Changes for Newmont

• The Consensus Analyst Price Target has risen slightly from $73.22 to $74.75.
• The Consensus Revenue Growth forecasts for Newmont has risen from 1.6% per annum to 1.7% per annum.
• The Future P/E for Newmont remained effectively unchanged, moving only marginally from 13.98x to 14.23x.