CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lift our 12-month target by $9 to $45, as we value NEM at an EV/EBITDA of 5.8x our 2024 EBITDA view, in line with peers, but a discount to NEM’s three-year average forward EV/EBITDA of 7.2x. We trim our 2023 EPS view by $0.17 to $1.81, but hike 2024’s by $0.52 to $2.79. NEM posted Q3 adj. EPS of $0.36 vs. $0.27, $0.04 below consensus, on a sales miss of 12%. During Q3, NEM generated $1 billion in operating cash flow and $397 million in free cash flow. Our upgrade to Buy is the result of incrementally positive gold price fundamentals (with heightened geopolitical risk and the Fed near the end of rate hikes) and our view that NEM’s operations are poised to improve starting in Q4. The union strike at Penasquito has been resolved and the mine is ramping back up. We also expect improved performance from joint ventures at Pueblo Viejo and Nevada Gold Mines starting in Q4. NEM is on track to close the acquisition of Newcrest Mining Limited on November 6. We anticipate significant synergies and per-share accretion.