Analyst Cuts Price Targets For These Gold Stocks, Names Agnico Eagle Top Pick

Zinger Key Points
  • Bank of America has reduced its price targets for three precious metal miners.
  • Gold miners have underperformed in 2022 despite extremely high inflation.

Second-quarter earnings season was mostly bad news for North American precious metal miners. Several producers lowered their guidance for the second half of the year, and Bank of America analyst Lawson Winder lowered his price target for a handful of gold and silver miners on Monday.

Updated Targets: Winder made the following changes to gold and silver stocks under his coverage:

  • Centerra Gold Inc. CGAU, reiterated Underperform rating, price target cut from $6.30 to $5.60.
  • Pan American Silver Corp. PAAS, reiterated Buy rating, price target cut from $25 to $22.
  • Barrick Gold Corp GOLD, reiterated Buy rating, price target cut from $27.25 to $27.

Related Link: An ETF To Protect Your Portfolio? Goldman Sachs Has a Product For You

Bank of America projects gold prices will average $1,938 per ounce in 2022 and $2,049/oz in 2023. The firm is projecting silver prices of $21.04/oz in 2022 and $19.51/oz in 2022.

Winder said stagflation could push gold and prices even higher than his current projections.

Top Pick: He named Agnico Eagle Mines Ltd AEM his top stock pick in the precious metal mining group.

"AEM is a stand-out with unchanged 2022 production and cost guidance (unlike many peers), is delivering well on Kirkland Lake merger synergies, and a focus on increasing reserve life by way of exploration," Winder said.

Related Link: If You Invested $1,000 In The GLD Gold ETF At Its Pandemic Low, Here's How Much You'd Have Now

Gold has likely been a disappointment for most investors in 2022 up to this point. Despite inflation at multi-decade highs, the SPDR Gold Trust GLD is down 2.7% year-to-date.

Benzinga's Take: Gold certainly hasn't been the classic inflation hedge investors have been looking for in 2022. In fact, the VanEck Gold Miners ETF GDX has even underperformed the S&P 500 as a whole year-to-date, falling 16.6%.

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Posted In: Analyst ColorPenny StocksPrice TargetReiterationSmall CapAnalyst Ratings