Freedom Broker downgrades Newmont stock rating on execution risks
Freedom Broker has lowered its rating for Newmont Mining Corp. (NYSE:NEM) from "Buy" to "Hold" due to execution risks and valuation concerns. The stock is currently trading at $117.18, above the newly assigned target price of $116.00. Analyst Vitaly Kononov highlighted that Newmont has the least favorable balance of earnings growth, execution risk, and valuation upside among major producers.
The company's 2027 EBITDA estimate is expected to fall 16% to $16.5 billion, with slower growth compared to other major producers. Key issues include operational performance at Lihir and Cadia, coupled with cost inflation across Newmont's Australian portfolio. Despite this downgrade, Freedom Broker still believes the company is undervalued based on its Fair Value estimate of $133.78.
Newmont's recent positive credit rating from S&P Global and a raise in price target by Raymond James are positive developments, but the broader gold mining sector remains under pressure due to declining gold prices and rising interest rates.
Written by urgent.news from Investing.com's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
