Raymond James raised the target on Barrick Gold(ABX:TSX) to $40 from $35

STA Research
by: STA Research

Raymond James Capital Barrick Gold Inc. raised the target on the company’s stock to $40 from $35 and maintained the Outperform rating.

TD Research raised the target to $38.50 from $35.50, and maintained the Buy rating(Action List Buy) on the company.

Barrick Gold Corporation Stock Analysis:

Based on the Barrick Gold Corporation stock forecasts from 9 analysts, the average analyst target price for Barrick Gold Corporation is CAD 33.71 over the next 12 months. Barrick Gold Corporation’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Barrick Gold Corporation is Slightly Bearish, which is based on 4 positive signals and 5 negative signals. At the last closing, Barrick Gold Corporation’s stock price was CAD 29.53Barrick Gold Corporation’s stock price has changed by +3.58% over the past week, -4.90% over the past month and +9.13% over the last year.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What we don’t like:

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector

 

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