In a Jan. 2 research note, analyst Anita Soni reported CIBC resumed coverage of Barrick Gold Corp. (ABX:TSX; GOLD:NYSE) with an Outperformer rating and a US$17 per share price target as it is "a new era for a new Barrick."
Soni added, "There remains a 26% return to our price target at current multiples and the potential for further upside opportunity with delivery of the strategic plan."
CIBC's current target price and rating compare to its previous US$14.50 target price and Neutral rating on the miner. Barrick's current share price is about US$13.05.
The new Barrick, having merged with Randgold, Soni noted, owns five of the world's Top-10 tier 1 gold assets along with sizable land positions in established gold districts. The senior mining company's portfolio consists of 21 mines and six projects in North America, South America, Africa, Australia and Asia. These assets present "significant opportunities for production growth, asset rationalization, operational improvement and optimization through exploration additions and mineral resources management," Soni indicated. The company's management team is "known for delivering industry-leading returns for investors."
All of the above, along with CEO Mark Bristow's strict method of evaluating new projects, afford investors in the name the chance to yield a premium multiple, Soni concluded.[NLINSERT]
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Disclosures from CIBC, Barrick Gold Corp., January 2, 2019
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Important Disclosure Footnotes for Barrick Gold Corp. (GOLD)
· CIBC World Markets Inc. expects to receive or intends to seek compensation for investment banking services from Barrick Gold Corporation in the next 3 months.