UPDATE: Deutsche Bank Reiterates Hold Rating, Lowers PT on Newmont Mining
In a report published Monday, Deutsche Bank reiterated its Hold rating on Newmont Mining (NYSE: NEM), but lowered its price target from $59.00 to $54.00.
Deutsche Bank noted, “Guidance for Yanacocha (Peru flagship mine) declining in 4Q12 and beyond. While Yanacocha's outlook has been winding down for years, we find the timing odd, as Yanacocha contributed a surprisingly strong 3Q12 benefitting from higher mill ore and less leach ore (expected to reverse going forward). According to management, changes in Yanacocha's output are following 3Q12's 800 person workforce reductions to “re-level” its size going forward. With output expected at 122k oz for Yanacocha effective 4Q12, we are reducing our estimate for this mine by ~200k oz for 2013 and ~250-300k oz beyond. Our 2012 diluted EPS declines to $3.29 (-8% vs prior) and 2013 cut to $6.03 (-8%) and compare to FactSet consensus of $3.93 and $5.14. On revised earnings outlook, our 12-month PT falls from $59 to $54 and remains based on 9x 2013E EPS and compares to our NPV/share of $53, provided simply as a cross-check.”
Newmont Mining closed on Friday at $48.74.
Latest Ratings for NEM
|Nov 2016||JP Morgan||Upgrades||Neutral||Overweight|
|Oct 2016||Mackie Research||Upgrades||Hold||Buy|
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