For an in-depth review of senior miners’ ratings, read Trump Uncertainty: Which Gold Stocks Are Analysts Betting On?
Along with gold prices, analysts’ bullishness on gold stocks has corrected steeply in the past year.
Gold Sector’s 1Q17 Earnings Preview: What to Expect PART 2 OF 14 How Analysts Are Rating Gold Miners as 1Q17 Results Approach Market sentiment Analysts’ recommendations and ratings are some of the most important market sentiment indicators for investors to consider.
Its target price is $4.31, which represents an upside potential of 13.4% based on its current market price.
The stock’s target price of $3.90 implies an upside potential of 25.4%.
Gold Miners’ Key Valuation Catalysts as 1Q17 Results Draw Near
as mentioned in Keep following Market Realist’s Precious Metals page to get the latest updates on these miners’ 1Q17 results.
Gold Sector’s 1Q17 Earnings Preview: What to Expect PART 14 OF 14Gold Miners’ Key Valuation Catalysts as 1Q17 Results Draw Near Valuation multiple The EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) valuation multiple is a good measure for capital-intensive industries.
Higher multiples The chart above compares gold miners’ EV-to-forward EBITDA multiples and EBITDA margins for 2017.
Among North American intermediate gold miners, Agnico Eagle Mines (AEM) has the highest forward EV-to-EBITDA multiple of 13.2x.
Its lower multiple is mainly the result of its above-average all-in sustaining costs and concerns regarding production falls in the medium term.
Must Know: Gold Miners’ 1Q17 Expectations
as mentioned in Gold Sector’s 1Q17 Earnings Preview: What to Expect PART 1 OF 14Must Know: Gold Miners’ 1Q17 Expectations Gold’s run in 1Q172017 began on a positive note for gold and gold miners, especially after an unexpectedly bad 4Q16.
There were wide variations among the stock performances of gold miners in 1Q17, mainly due to their varying 4Q16 earnings and 2017 outlooks.
Stock performancesThe VanEck Vectors Gold Miners ETF (GDX) rose 9% in 1Q17.
In 1Q17, gold prices rallied 8.5%.
In this series, we’ll talk about these companies’ earnings expectations and some of the common themes in the gold industry.
collected by :Irax John