Ahead Of The Bell: Barrick Raised To 'Outperform'

NEW YORK (AP) — Expectations that Barrick Gold Corp.'s production will increase and gold prices will rebound prompted an analyst to upgrade the Canadian mining giant Wednesday.

RBC Capital Markets analyst Stephen Walker called Barrick a "low-risk investment" that is prepared to weather the credit crisis, even if gold prices don't rise as much as expected. The company is equipped with a 7.3 million ounce production profile which will be boosted by three new low-cost mines to be completed over the next three years, Walker said, adding that the company's hefty reserve base and expected free cash flow growth will also strengthen its value.

Walker upgraded the company to "Outperform" from "Sector Perform" with a price target of $47.

Shares of Barrick fell 69 cents to $37.20 in premarket trading.