UPDATE: J.P. Morgan Reiterates on Barrick Gold Following Equity Issuance

In a report published Friday, J.P. Morgan analyst John Bridges reiterated a Neutral rating on

, and raised the price target from $18.00 to $19.00. In the report, J.P. Morgan noted, “Cost overruns and the Equinox purchase have contributed to Barrick's $14.5bn debt load. Changes to the SLA in the Dominican Republic and delays with Pascua Lama have left Barrick with less cashflow to service its debt. This equity issue could be demonstrating financial prudence or it could suggest that 2014 operating results will be weaker than the market currently expects. Today's announcement of a full suspension at the Pascua Lama project and continuing cost cuts should strengthen the company's near term cashflow. On its face, this equity issuance creates about 16% dilution; however the simultaneous progress with current costs and the promise of another $500mn saving seems to mitigate the impact of the higher share count assuming the cost cuts are sustainable, lifting our target price by $1 to $19.” Barrick Gold closed on Thursday at $19.39.