Key Takeaways
- Barrick shares fell 5.7% today after Freedom Broker cut the stock to Hold from Buy and lowered its price target to $46 from $54.
- Freedom Broker also downgraded Newmont and Agnico Eagle. AngloGold Ashanti and Equinox Gold fell even more than Barrick without a downgrade, which points to gold’s slide as a major driver.
- Analysts still expect Barrick’s normalized EPS to rise from $2.42 in fiscal 2025 to $4.22 in fiscal 2027.
- Barrick’s forward P/E is well below its five-year average, and its third-quarter report on Nov. 9 is the next test.
Barrick Mining (B) shares sank 5.7% today after Freedom Broker cut the gold miner to Hold from Buy and lowered its price target to $46 from $54.
Freedom Broker analyst Vitaly Kononov downgraded Newmont (NEM) and Agnico Eagle Mines (AEM) to Hold at the same time, and those stocks fell 4.5% and 6.4%. But AngloGold Ashanti (AU) dropped 6.1% and Equinox Gold (EQX) 6% without a downgrade from Freedom Broker.
Gold Weighed on the Whole Group
Freedom Broker did trim its Barrick estimates, but it still credits the miner with an “attractive earnings trajectory.”
Look at AngloGold and Equinox. Freedom Broker didn’t downgrade either one, and both fell harder than Barrick during the broader selloff. Kinross Gold (KGC) fell nearly as much without a downgrade. Newmont, one of the three stocks Freedom Broker cut, fell the least of the group.
What these stocks have in common is gold. Spot gold fell about 2% today to around $4,050 an ounce, its lowest level since early August and well below January’s record near $5,600. Miners tend to magnify the metal’s moves. The S&P 500 was also down about 1%, so the whole group took the hit.
TIKR Tracks 24 Analysts on Barrick Mining. How Many Say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on Barrick Mining, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Barrick Mining’s Analyst Ratings
Barrick’s Earnings Are Still Climbing
Analysts as a group still expect Barrick’s normalized EPS to rise from $2.42 in fiscal 2025 to $3.56 this year and $4.22 in 2027.
The stock wasn’t priced for perfection going in, either. At Wednesday’s close, Barrick traded at 11x forward earnings, well under its five-year average of nearly 15x.
After today’s drop, it’s closer to 10x.
A Cheaper Barrick Heading Into Earnings
The pattern across the group suggests gold’s decline contributed to Barrick’s selloff alongside the downgrade. The broker trimmed its estimates, but the Street as a whole still expects Barrick’s earnings to keep climbing, and the stock now costs less for that growth. Freedom Broker’s new $46 target sits below the Street’s $51 consensus, and it’s still well above where the stock trades today.
If gold keeps sliding, those EPS estimates will follow it down.
Newmont reports its third quarter after today’s close, and Agnico Eagle reports next week. That gives investors a read on the group before Barrick reports before the open on Monday, Nov. 9.
So what is Barrick stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
