Citigroup Lowers Price Target on Newmont Mining (NEM)

Citigroup Lowers Price Target on Newmont Mining (NEM)


Citigroup reported on Wednesday that they have reduced their price target on gold producer, Newmont Mining Corp(NEM).

The firm has reaffirmed a “Neutral” rating on NEM, and has lowered the company’s price target from $50 to $49. This price target suggests an 8% increase from the stock’s current price of $44.99.

An analyst from the firm commented, “incorporating actual 4Q12 gold prices and our revised forecast for 2013 brings our estimate down to $3.90 from $4.14. Newmont already provided 2013 guidance, expecting production to be stable YoY at the midpoint of guidance (4,950k ozs) while unit cash cost should climb by 5.6% (+$38/oz) to $713/oz. – Newmont Mining (NEM) – 4Q12 Output Disappoints, Cutting 2013 Est’s to Reflect Guidance.) We are taking our price target down slightly to $49/share from $50. We value the stock based on a weighted average of multiple and DCF valuation, and we continue to apply a 14.0 multiple to EPS but we shift valuation out to 2014.”

Newmont Mining shares were down 28 cents, or -0.62% during Wednesday afternoon trading. The stock has declined -24% in the past year.

The Bottom Line
Shares of Newmont Mining Corp(NEM) have a 3.11% yield, based on Wednesday afternoon’s price of $44.99.

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.

Free Updates

Join over 100,000 investors who get the latest news from

Best Dividend Stocks

Looking for stocks that are poised for growth and pay solid dividends? Visit our list of the:

Best Dividend Stocks

Partner Center

Best CD Rates

Sitting on some extra cash and looking for the most current and profitable CD Rates?

Get The Best CD Rates

14 Day Free Trial

Earn more from your dividend portfolio within the next 14 days.

Sign Up Today