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