ABX Stock Analysis and Forecast
Barrick Gold Corp: Based on the stock forecasts from 11 analysts, the average target price for the company’s stock is CAD 27.48 in the next 12 months. The average analyst rating for the company is “Strong Buy”. However, Stock Target Advisor’s own analysis of the company is “Neutral”, which is based on a combination of positive and negative signals. At the last closing, the company’s stock price was CAD 24.85. The stock price has fluctuated over the past week, month, and year, with a change of -3.68%, +7.39%, and +6.93% respectively.
Gold News
Gold prices steadied on Friday, January 20th, after reaching an eight-month high in the previous session. The increase in gold prices is likely due to a darkening economic outlook in the US and Europe. Federal Reserve Vice Chair Lael Brainard and European Central Bank President Christine Lagarde both stated that interest rates will need to stay high to cool inflation. Additionally, inflation in Japan reached 4% for the first time in over four decades. Gold has been rallying since November due to a less hawkish Fed, a decrease in the value of the dollar, and falling Treasury yields. It may also be benefiting from increased demand as a safe haven investment as the economic outlook for the US and Europe worsens. Despite mixed economic data from the US this week, jobless claims reached the lowest levels since September, highlighting the strength of the labor market.
Recent Analyst Coverage
Cormark Securities(Rank#318), lowered their target price for Barrick Gold Corp to CAD 27 on January 18th, 2023.
National Bank of Canada Financial(Rank#16), raised their target price for Barrick Gold Corp to CAD 30 on January 13th, 2023. They also maintained their Sector Perform rating, which means that they believe the stock is likely to perform in line with the broader market or industry sector.
Bull Case For ABX on Recession
During a recession, gold is often considered a safe haven asset and its demand increases as investors seek to protect their wealth from market volatility and economic uncertainty. When the economy is in a downturn, investors tend to move their money from riskier assets such as stocks to less risky assets like gold, which can preserve its value during times of crisis. Additionally, during a recession, Central Banks may lower the interest rates, which makes the opportunity cost of holding gold lower, thus increasing its demand and driving its prices up.
As such, under the possible environment of a protracted recession, Barrick Gold is likely to continue to benefit, and it’s possible that the stock could reach all time highs of over $50 per share.
