Analyst Coverage Highlights Underperformance for Newmont

A recent report reveals that CLSA has initiated coverage of Newmont with an 'Underperform' recommendation, despite a projected price target suggesting substantial upside. Revenue forecasts indicate a significant decrease, which could influence investor sentiment and stock performance.

Date: 01-12-2024

AI Rating: 4

The report indicates that CLSA has initiated coverage of Newmont with an 'Underperform' recommendation. This negative rating alone may deter potential investors and could lead to a decline in stock price as market sentiment shifts. This negative outlook on Newmont is concerning for shareholders and potential investors alike.

Analyst price forecasts show an average one-year price target of 59.87 GBX/share, suggesting a 42.65% upside from the latest closing price of 41.97 GBX/share. While the projected upside may appear promising, the initial rating of 'Underperform' could lead the market to view this forecast skeptically.

Furthermore, the projected annual revenue for Newmont is expected to be 12,365MM, which reflects a worrying decrease of 27.21%. Such a significant drop in projected revenue may raise alarms among investors about the company's operational performance going forward.

The report also provides insights into fund sentiment, noting that there are 1,973 funds or institutions reporting positions in Newmont, which shows an increase in ownership by 106 owners or 5.68% in the last quarter. However, the fact that total shares owned by institutions decreased by 1.03% to 939,995K shares over the past three months could signal wavering confidence among institutional investors.

Major shareholders like BlackRock have increased their holdings, while other firms such as Van Eck Associates have seen a decrease in shares owned. This mixed picture indicates uncertainty in the fund management community regarding Newmont's future performance.

Overall, the mentioned decrease in revenue and the underperform rating could lead to a bearish sentiment surrounding Newmont's stock, potentially leading to a downward adjustment in its stock price.

Stocks: NEM