Goldman Sachs Remains Bullish On Barrick Gold, Ups Target To $23

After hours on Wednesday, Goldman's equity team headed by Andrew Quali decided to review the firm's' prior bullish commentary on Barrick Gold Corporation (USA) ABX. Quali reiterated Buy on Barrick Gold and upped the price target from $22 to $23 noting a belief in "the self-help rerating story" that has just begun. Gold prices have gained roughly 20 percent year-to-date and Barrick shares have returned an astounding 150 percent in 2016.

Quali's looking glass yields a view of flowers and unicorns in the near-term as he spots "a number of potential positive catalysts over the next six months." The golden nugget that catches his eye comes in the form of more asset sales and updates on growth projects. The assets sales would be non-core in nature and the divestiture would serve the purpose of reducing 2016 debt by $2 billion.

As for the growth projects, Quali believes Barrick could break ground on projects mentioned at the company's Investor Day. Of note, Quali says Turquoise Ridge may be the first project approved thanks to low CapEx requirements and maturity of studies performed that now see production doubling to 500koz on 100 percent basis.

Shares of Barrick Gold closed Wednesday's session at $19.22, up $0.40 or roughly 2.15 percent.