Deutsche Bank Downgrades Newmont Mining Corp to "Sell" (NEM)

Deutsche Bank Downgrades Newmont Mining Corp to “Sell” (NEM)

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Deutsche Bank analysts downgraded gold mining company Newmont Mining Corp (NEM) early on Monday, saying the company will continue to be negatively affected by lower-than-expected gold prices and increasing capital expenditure and other expense requirements.

The analyst downgraded NEM from “Hold” to “Sell” and now see shares reaching $24, down from the previous target of $40. This new valuation suggests a 27% downside to Friday’s closing price of $32.98.

“Given our more cautious view on the gold sector, we are downgrading Newmont to Sell from Hold on limited near-term growth opportunities and relative higher cost structure than other gold producers in our coverage universe,” a Deutsche Bank analyst said.

Newmont Mining shares were up 52 cents, or +1.58%, during pre-market trading on Monday. The stock is down -28.98% year-to-date.

The Bottom Line
Shares of Newmont Mining (NEM) have a dividend yield of 5.15% based on Friday’s closing price of $32.98 and the company’s annualized dividend payout of $1.70 per share.

Newmont Mining Corp (NEM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 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.

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