Sep. 3 at 8:11 PM
Citi's global commodities team remains bullish on large-cap gold stocks, naming Newmont and Agnico Eagle Mines as its top picks in the sector. The bank expects gold prices to reach
$5,000 per ounce by the end of 2027, while noting that gold equities are currently valued as if gold prices were roughly
$500 per ounce below current spot levels.
Citi sees Newmont as its preferred large-cap gold producer, highlighting its ability to generate a free-cash-flow yield of more than 6% at current gold prices. The bank believes the company offers investors a combination of direct exposure to higher gold prices and strong cash-flow generation.
Newmont reported adjusted second-quarter earnings of
$2.10 per share and revenue of
$6.12 billion, both below analyst expectations. Following the results, Raymond James raised its price target on the stock, while Argus lowered its target, reflecting differing views on the company's outlook.
$NEM