Deutsche Bank Downgrades Barrick to “Hold” (ABX)
Deutsche Bank reported on Monday that it has lowered its outlook on gold producer Barrick Gold Corporation (ABX).
The firm has downgraded ABX from a “Buy” to “Hold,” and has reduced the company’s price target from $40 to $22.50. This price target suggests a 19% upside from the stock’s current price of $18.17.
Analysts from the firm have downgraded the company due to lower than expected gold prices and rising costs.
An analyst from the firm commented, “given our more cautious view on the gold sector, we are downgrading Barrick to Hold from Buy given the company’s larger debt position, high capex commitments over the next few years, more limited near-term cash flow generation and increasing probability of an equity issuance should funding gap emerge.”
Barrick shares were up 45 cents, or 2.48% during premarket trading Monday. The stock has declined -55% in the past year.
The Bottom Line
Shares of Barrick Gold Corporation (ABX) have a 4.40% yield, based on Friday’s closing price of $18.17.
Barrick Gold Corporation (ABX) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.
Get FREE Dividend Tips, Updates & MoreWe respect your privacy
- Powerful dividend insights sent every weekday morning
- Gain instant access to actionable investing tips
- Strategically grow your portfolio’s profitability