Newfield Exploration "We downgrade NFX to Neutral from Buy," Goldman Sachs analysts wrote in a March 18 report. "In our view, shares have underperformed in the last year because assets the Street was willing to credit (Eagle Ford/Granite Wash/Bakken) underperformed or were de-prioritized, while assets on which NFX management is most focused (Uinta Basin oil, Malaysia and the now-disclosed Cana Woodford Shale) were not embraced by the Street. We were late in recognizing the impact of Eagle Ford/Granite Wash underperformance and extent to which the Street would focus on headline negatives from gas declines and shifts in regional capital allocation over oil growth elsewhere." Shares of Newfield Exploration fell to a 52-week low of $33.74 on Thursday. The stock's 52-week high of $77.37 was set on March 30. Newfield Exploration's forward P/E is 8.92; the average for exploration and production companies is 18.58. For comparison, EQT ( EQT) and Linn Energy ( LINE) have higher forward P/Es of 14.97 and 15.97, respectively. Sixteen of the 29 analysts who cover Newfield Exploration rated it buy. Twelve analysts gave the stock a hold rating and one rated it sell. TheStreet Ratings gives Newfield Exploration a C+ grade and a hold rating. The stock has fallen 10.1% year to date.
Newmont Mining "We reiterate our BUY rating for NEM, but are reducing our target to C$76.00/sh (from a previous target of $84.00/sh)," GMP Securities analysts wrote in a March 2 report. "The target reduction is primarily due to the higher capex guidance, elevated cash costs, the elimination of Hope Bay's contribution to our NAV6% and the sector-wide derating we have witnessed over the past several months. Our new target represents a ±1.35x multiple to our NAV6% at GMP metal prices, placing it in line with our Goldcorp target P/NAV (1.35x), but ahead of our Kinross and Agnico-Eagle target P/NAV's (1.0x and 1.2x, respectively)." Shares of Newmont Mining fell to a 52-week low of $50.47. The stock's 52-week high of $72.42 was set on Nov. 9. Newmont Mining's forward P/E is 8.97; the average for gold mining companies is 12.05. For comparison, both Royal Gold ( RGLD) and Allied Nevada ( ANV) have higher forward P/Es of 25.48 and 12.94, respectively. Eleven of the 20 analysts who cover Newmont Mining rated it hold. Eight analysts gave the stock a buy rating and one rated it sell. TheStreet Ratings gives Newmont Mining a C+ grade and a hold rating. The stock has fallen 15.26% year to date.