Newmont Mining’s Price Target Lowered at Jefferies; Q2 Earnings Fell Flat (NEM)


Shutterstock photo

Gold producer Newmont Mining Corp. ( NEM ) on Monday caught some tepid commentary from analysts at Jefferies & Co.

The firm maintained its "Hold" rating on NEM but lowered its price target from $46 to $43. That new target suggests a 3% downside to the stock's Friday closing price of $44.53.

A Jefferies analyst commented, "Newmont's reported 2Q EPS of 59 cents was much lower than the Street's estimate of 93 cents. Attributable gold production fell 10% q/q and costs applicable to sales increased 10%. We expect NEM's free cash flow to remain depressed due to the short reserve life of its assets and significant challenges facing its replacement projects. In our opinion, FCX shares offer investors superior risk/reward."

Newmont Mining shares fell 41 cents, or -0.9%, in premarket trading Monday.

The Bottom Line
Shares of Newmont Mining ( NEM ) have a 3.14% dividend yield, based on Friday's closing stock price of $44.53. The stock has technical support in the $38-$40 price area. If the shares can firm up, we see overhead resistance around the $47-$50 price levels.

Newmont Mining Corp. ( NEM ) is not recommended at this time, holding a DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Created by

This article appears in: Investing , Stocks

More from

Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by