Demystifying Newmont: Insights From 4 Analyst Reviews

Newmont NEM underwent analysis by 4 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Newmont and provided 12-month price targets. The average target is $56.25, accompanied by a high estimate of $63.00 and a low estimate of $50.00. Witnessing a positive shift, the current average has risen by 8.7% from the previous average price target of $51.75.

Deciphering Analyst Ratings: An In-Depth Analysis

An in-depth analysis of recent analyst actions unveils how financial experts perceive Newmont. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Daniel Major |UBS |Raises |Buy | $60.00|$50.00 | |Brian MacArthur |Raymond James |Raises |Outperform | $63.00|$54.00 | |Josh Wolfson |RBC Capital |Raises |Sector Perform | $52.00|$51.00 | |Tanya Jakusconek |Scotiabank |Lowers |Sector Perform | $50.00|$52.00 |

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Newmont. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Newmont compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Newmont's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Newmont's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Newmont analyst ratings.

Get to Know Newmont Better

Newmont is the world's largest gold miner. It bought Goldcorp in 2019, combined its Nevada mines in a joint venture with competitor Barrick later that year, and also purchased competitor Newcrest in November 2023. Its portfolio includes 17 wholly or majority owned mines and interests in two joint ventures in the Americas, Africa, Australia and Papua New Guinea. The company is expected to sell roughly 5.5 million ounces of gold in 2025 from its core mines after selling six higher-cost, smaller mines, likely effective mid-2025. Newmont also produces material amounts of copper, silver, zinc, and lead as byproducts. It had about two decades of gold reserves along with significant byproduct reserves at the end of December 2024.

Breaking Down Newmont's Financial Performance

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: Newmont's revenue growth over a period of 3M has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 42.84%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Materials sector.

Net Margin: Newmont's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 24.82%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Newmont's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.7% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Newmont's ROA excels beyond industry benchmarks, reaching 2.49%. This signifies efficient management of assets and strong financial health.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.3, caution is advised due to increased financial risk.

The Basics of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.