Matt Murphy, an analyst from BMO Capital, has initiated a new Hold rating on Barrick Gold (GOLD).
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Matt Murphy has given his Hold rating due to a combination of factors influencing Barrick Gold’s current and future performance. The company is making strides in improving reliability and performance, particularly in Nevada and at the Pueblo Viejo expansion, and is working to restore its operational license at Loulo Gounkoto. These efforts are expected to enhance operating cash flow, especially as Barrick prepares for a significant copper capital cycle that could elevate its position among copper producers.
However, Murphy notes that the perceived risks associated with the Reko Diq project may negatively impact valuation multiples in the short term. While Barrick is reducing cash leakage and investing in future growth, the anticipated premium from its copper growth might be delayed. Despite these challenges, the company is positioned to generate cash, maintain dividends, and prepare for its capital program, supporting the Hold rating as Barrick navigates these complexities.
According to TipRanks, Murphy is a 5-star analyst with an average return of 18.3% and a 69.64% success rate. Murphy covers the Basic Materials sector, focusing on stocks such as Agnico Eagle, Barrick Gold, and Franco-Nevada.
In another report released yesterday, Scotiabank also maintained a Hold rating on the stock with a $22.00 price target.