Goldman Sachs raises its 2017 gold price forecast to $1,150/oz. from $1,000 but says equity investors must remain selective, as the firm issues two stock upgrades and two downgrades among gold miners.
Newmont Mining (NEM +0.1%) is upgraded to Buy from Neutral with a $36 price target, hiked from $23.50, as Goldman says NEM as the gem of the group and believes organic growth from Merian is less than six months away.
The firm also upgrades Kinross Gold (KGC -9%) to Neutral from Sell with a $5.30 price target, but downgrades Franco-Nevada (FNV -2.7%) to Sell from Neutral with a $51 price target and Goldcorp (GG -1.8%) to Neutral from Buy with a $16 target.