New Gold price target raised to $4.75 from $3.40 at CIBC

CIBC raised the firm’s price target on New Gold (NGD) to $4.75 from $3.40 and keeps an Outperformer rating on the shares. The firm cites the consolidation of 100% of New Afton and a stronger-than-expected Q1/25. On May 1, New Gold announced it completed its agreement to acquire the remaining 19.9% free cash flow interest in its New Afton mine from Ontario Teachers’ Pension Plan in exchange for a $300M cash payment. New Gold has now consolidated its free cash flow interest in New Afton to 100%. Additionally, all existing agreements with respect to Ontario Teachers’ free cash flow interest in New Afton have been terminated. The company also reported Q1/25 results on April 29, with production beating the firm’s expectations, CIBC notes.