Update shared on10 Oct 2025
Fair value Increased 12%Analysts have raised their price target for Newmont from $79.64 to $88.91, citing stronger expected revenue growth, improving profit margins, and favorable outlooks for gold and other metals.
Analyst Commentary
Recent analyst actions regarding Newmont have highlighted a range of factors influencing the company's outlook, impacting both valuation expectations and execution risks. Market sentiment is currently skewed towards optimism, but several cautionary notes remain. Below, key bullish and bearish takeaways are summarized.
Bullish Takeaways- Bullish analysts have raised their price targets, driven by improving fundamentals such as stronger revenue growth and rising profit margins.
- Upgrades to Outperform or equivalent ratings indicate that Newmont is perceived as having further upside potential relative to its sector, especially after lagging peers in recent periods.
- Increased forecasts for gold and other metals prices are expected to benefit Newmont's top-line growth and support higher valuations.
- Confidence remains high regarding Newmont's project pipeline and ongoing share repurchase activities, which suggests continued execution on strategic initiatives.
- Some bearish analysts have downgraded the stock to a neutral stance, citing concerns about execution risks and the stock's recent relative performance.
- Price target increases from certain firms remain modest, reflecting a degree of caution over near-term headwinds and valuation limits.
- There are ongoing concerns about delivering on development projects and stabilizing key asset portfolios, which may impact future growth and capital returns.
- Despite upward revisions, a few analysts express reservations about Newmont's ability to consistently outperform sector benchmarks in the medium term.
What's in the News
- Newmont is considering deep job cuts as part of a cost reduction drive following its $15 billion acquisition of Newcrest Mining in 2023 (Bloomberg).
- Barron's notes that Newmont is undervalued compared to its peers, reporting strong earnings and cash flow amid rising gold and silver prices. This may make it an attractive option for investors seeking exposure to precious metals (Barron's).
- The White House is preparing to clarify that gold bars will not be subject to tariffs, addressing market confusion and directly affecting Newmont's trade position (Bloomberg).
Valuation Changes
- Consensus Analyst Price Target has increased from $79.64 to $88.91, reflecting greater expected upside.
- The discount rate has risen slightly from 7.54% to 7.68%, indicating a marginally higher perceived risk or cost of capital.
- Revenue growth projections have nearly doubled, moving from 2.36% to 4.39%.
- Net profit margin estimates have improved, up from 30.13% to 31.93%.
- The future P/E ratio has declined modestly from 14.68x to 14.64x, suggesting a slightly more attractive valuation based on projected earnings.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.