NEW YORK (TheStreet) -- Shares of Newmont Mining Corp. (NEM) , a production-stage mining company focused on gold production, are up 1.11% to $25.86 in afternoon trading today as Citigroup raises its price target to $30 from $27.
"After updating our model for fourth quarter results and improved 2015 production guidance, we are increasing our 2015 EBITDA forecast by 3% to $2.9 billion, while our EPS estimate of $1.51 remains unchanged reflecting higher-than modeled DD&A guidance," Citigroup said.
For 2016, Citigroup is reducing their EBITDA estimate by 4% to $3 billion to reflect a slightly lower gold production forecast, while their 2017 EBITDA estimate increases 12% to $3.2 billion after incorporating better initial cost guidance.
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"We continue to rate Newmont Mining a 'buy,' based on our free cash flow outlook through 2017 and likely debt reduction," analysts added.
Separately, TheStreet Ratings team upgraded NEWMONT MINING CORP to "hold" from "sell" today with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate NEWMONT MINING CORP (NEM) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we find that the stock has experienced relatively poor performance when compared with the S&P 500 during the past year."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 101.3% when compared to the same quarter one year prior, rising from -$1,166.00 million to $15.00 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, NEWMONT MINING CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- NEWMONT MINING CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, NEWMONT MINING CORP turned its bottom line around by earning $1.10 versus -$5.16 in the prior year. For the next year, the market is expecting a contraction of 5.9% in earnings ($1.04 versus $1.10).
- In its most recent trading session, NEM has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- You can view the full analysis from the report here: NEM Ratings Report