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JPMorgan Takes Action on Gold Mining Stocks

- By Alberto Abaterusso

The analyst at JPMorgan Chase & Co. (JPM) took action on gold mining stocks on Monday.

JPMorgan maintained its neutral rating on Barrick Gold Corp. (ABX). The U.S. bank sees the stock trading within a tight range of prices in the near future. That is suggesting more opportunities for options investors and other traders, who use certain trading strategies for neutral markets.


The U.S. bank has set a price target of $13 per share. That is 25.6% growth from the current market price of $10.35. The stock closed up 2.4% Monday, and the market capitalization is $12.09 billion.

The estimate of JPMorgan will drag the average target price down to about $14.29 per share of Barrick Gold Corp. from a previous mean value of $14.35 per share.

Currently, Barrick Gold Corp. has a recommendation rating of 3 out of 5. There are eight analysts who are recommending buying shares of the company, 15 who are suggesting holding the stock and one who is saying the stock will underperform.

According to GuruFocus, Barrick Gold Corp. has a price-book ratio of 1.28 versus an industry median of 1.74, and enterprise value to Ebitda ratio of 8.31 versus an industry median of 9.3.

The stock lost 39% for the 52 weeks through Sept. 17. The 52-week range is from $9.53 to $17.08 per share. The share price is below the 200-, 100- and 50-day simple moving average lines.

JPMorgan maintained its overweight rating on Goldcorp (GG). The firm set a price target of $16 per share of Goldcorp. The U.S. bank predicts that Goldcorp will outperform its industry in the market.

Compared to the current share price of $10.54, the price target represents a nearly 52% increase. The estimate of JPMorgan will push the average target price a little bit down to $17.26 from a current $17.33 per share.

The stock has a recommendation rating of 2.1 out of 5. Twelve analysts are suggesting buying shares of Goldcorp, nine are recommending holding the stock and one analyst is saying that Goldcorp will underperform.

Goldcorp has a market capitalization of approximately $9.2 billion, a price-book ratio of 0.65 versus an industry median of 1.74, and an EV-to-Ebitda ratio of 10.23 versus an industry median of 9.3.

The stock has fallen 18% for the 52 weeks through Sept. 17. The 52-week range is from $9.89 to $15.55 per share. The share price is below the 200-, 100- and 50-day simple moving average lines.

JPMorgan gave Kinross Gold Corp. (KGC) a $5 price target and maintained a neutral rating. The price target represents a 66% growth from the current share price of $3.01. The estimate will cause an increase of 2 cents in the average target price to $4.71 per share.

Eight analysts are recommending buying shares of the company. Eleven analysts are suggesting holding the stock. The recommendation rating is 2.5 out of 5.

Kinross Gold Corp. has fallen 33% for the 52 weeks through Sept. 17. The 52-week range per share is from $2.67 to $4.78. The share price is below the 200-, 100- and 50-day simple moving average lines.

Kinross Gold Corp. has a market capitalization of about $3.8 billion, a price-book ratio of 0.82 versus an industry median of 1.74, and an EV-to-Ebitda ratio of 3.79 versus an industry median of 9.3.

JPMorgan maintained its overweight rating on shares of Newmont Mining Corp (NEM). The bank has issued a price target of $40 per share of the U.S. large gold producer. The estimate of JPMorgan represents 31% upside from the current market value of $30.64 per share.

Following JPMorgan's new target price, the average will decline to $43.60 from $43.81 per share.

The recommendation rating is 2.4 out of 5. Eleven out of 18 analysts are recommending buying Newmont Mining Corp. and seven analysts are suggesting holding the stock.

Newmont Mining Corp. has fallen 20% for the 52 weeks through Sept. 17. The market capitalization is standing at $16.34 billion. The share price is below the 200-, 100- and 50-day simple moving average lines.

Newmont Mining Corp. has a price-book ratio of 1.51 versus an industry median of 1.74 and an EV-to-Ebitda ratio of 7.07 versus an industry median of 9.3.

Disclosure: I have no positions in any security mentioned in this article.

This article first appeared on GuruFocus.