Newmont Mining stock price target raised to $67 by Raymond James

Raymond James has raised its price target on Newmont Mining (NEM) to $67, maintaining an Outperform rating, reflecting the gold miner's robust performance, including a 63% year-to-date gain and Q1 2025 results that significantly surpassed expectations with $1.25 EPS and record $1.2 billion free cash flow. The company has also bolstered its balance sheet with $2.5 billion from divestments and executed $407 million in share repurchases. While Newmont anticipates $0.85 billion in after-tax proceeds from Q2 asset sales, Raymond James cautions that second-quarter production from non-core assets will be substantially lower, and all-in sustaining costs could be impacted by higher capital expenditures.

Analysis

Newmont's outlook is supported by a price target increase to $67.00 from Raymond James, which maintains an Outperform rating, reflecting the stock's 63% year-to-date appreciation. This analyst confidence is underpinned by stellar first-quarter 2025 results, where the company's earnings per share of $1.25 significantly beat the $0.88 consensus, and revenue of $5.01 billion surpassed expectations. The company generated a record free cash flow of $1.2 billion, bolstered its balance sheet with $2.5 billion in net cash from a major divestment program, and returned $407 million to shareholders via stock repurchases in April alone. However, near-term headwinds are anticipated for the second quarter. Raymond James cautions that production from non-core assets will be substantially lower post-divestment, and all-in sustaining costs (AISC) could rise due to higher sustaining capital and reclamation expenditures, potentially impacting cash flow.

Key Decisions for Investors

• The robust Q1 earnings beat, record free cash flow, and aggressive capital return program reinforce the bullish thesis for holding or accumulating Newmont shares.
• Investors should closely monitor the upcoming Q2 report for the flagged increase in All-In Sustaining Costs (AISC) and the financial impact of lower production from divested assets, which represent key near-term risks.
• Considering the stock's 63% year-to-date gain and trading near its 52-week high, new investors may want to await a more favorable entry point, while current holders could consider trimming positions to realize partial profits.