Breaking Down Newmont: 6 Analysts Share Their Views

In the preceding three months, 6 analysts have released ratings for Newmont NEM, presenting a wide array of perspectives from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Newmont, presenting an average target of $47.25, a high estimate of $54.00, and a low estimate of $43.50. Observing a downward trend, the current average is 4.87% lower than the prior average price target of $49.67.

Analyzing Analyst Ratings: A Detailed Breakdown

The standing of Newmont among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Newmont. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Newmont compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Newmont's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of Newmont's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Newmont analyst ratings.

Delving into Newmont's Background

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 produce roughly 6.9 million ounces of gold in 2024. However, after buying Newcrest, Newmont is likely to sell a number of its higher cost, smaller mines accounting for 20% of forecast sales in 2024. 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 end December 2023.

Newmont's Economic Impact: An Analysis

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Positive Revenue Trend: Examining Newmont's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 50.17% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Materials sector.

Net Margin: Newmont's net margin is impressive, surpassing industry averages. With a net margin of 4.23%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Newmont's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 0.59%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Newmont's ROA excels beyond industry benchmarks, reaching 0.31%. This signifies efficient management of assets and strong financial health.

Debt Management: Newmont's debt-to-equity ratio stands notably higher than the industry average, reaching 0.33. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Significance of Analyst Ratings Explained

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

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.

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