- Newmont Mining (NEM +0.3%) is upgraded to Overweight from Equal Weight with a $40 price target, raised from $37, at Morgan Stanley, citing its stronger execution, steadier production profile, deeper project pipeline, better reserve life and lower leverage vs. Barrick Gold (ABX -0.6%).
- The firm thinks NEM's new projects coming online should more than offset production from existing mines that is set to decline, especially given that the company has built a track record of successful project delivery.
- Stanley also downgrades ABX to Underweight from Equal Weight with a $12 target, cut from $14, believing ABX's recent underperformance looks set to continue through the rest of the year and ahead of the company's final agreement with the government of Tanzania.