Update shared on26 Sep 2025
Fair value Increased 6.54%The upward revision in Newmont’s Analyst Price Target to $79.64 reflects increased analyst confidence driven by stronger commodity market outlooks, improving project execution, and relative valuation appeal, partially tempered by mixed views on valuation upside and the pace of cost improvements.
Analyst Commentary
- Bullish analysts highlighted improved outlooks for gold, copper, and aluminum markets, citing sustained commodity strength and heightened supply stresses, particularly in copper, as drivers supporting higher price targets.
- Several upward revisions referenced Newmont's relative underperformance to peers, creating a perceived tactical buying opportunity for investors seeking value in lagging large-cap precious metals producers.
- Updates following recent earnings suggested that Newmont’s advancing development projects, stabilization of Tier 1 assets, ongoing share repurchases, and financial model updates post-Q2 reporting bolstered analyst confidence.
- Bearish analysts pointed to limited valuation upside after significant share price outperformance, with concerns that current valuations are now more in line with peers; cost improvements are expected to be gradual over the next two to three years.
- Variations in ratings and targets reflected mixed views regarding the immediacy of catalysts, with some maintaining a neutral stance based on fair valuations despite a positive sector outlook, and others initiating or continuing “Buy” recommendations based on tactical commodity forecasts and expected sector rotation.
What's in the News
- Newmont is considering significant job cuts as part of a cost-cutting push following its $15 billion acquisition of Newcrest Mining in 2023 (Bloomberg).
- The company is viewed as undervalued, trading at a 13x P/E ratio, and is generating strong earnings and record free cash flow amid rising gold and silver prices (Barron's).
- Newmont offers solid exposure to rising precious metal prices within a diversified portfolio, despite a lack of rapid production growth compared to junior miners (Barron's).
- A recent White House policy clarification is expected to exempt imported gold bars from tariffs after initial confusion that unsettled traders (Bloomberg).
- The Trump administration will issue an executive order to communicate that gold and other specialty products are not subject to new tariffs (Bloomberg).
Valuation Changes
Summary of Valuation Changes for Newmont
- The Consensus Analyst Price Target has risen from $74.75 to $79.64.
- The Consensus Revenue Growth forecasts for Newmont has significantly risen from 1.7% per annum to 2.4% per annum.
- The Future P/E for Newmont has risen slightly from 14.23x to 14.68x.
Disclaimer
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