RE:New Gold Keeps Stock Rating, Price Target at RBC Capital Mar
3 hours ago by MT Newswires
10:20 AM EDT, 10/30/2024 (MT Newswires) -- New Gold (NGD.TO) maintained its stock rating and price target at RBC Capital Markets and National Bank of Canada, according to notes published Tuesday.
RBC kept New Gold's Outperform rating and US$3.50 price target while National Bank maintained the company's Outperform, Risk Rating Speculative, and C$5.50 price target.
In RBC's view, NGD -- "one of our global mining best ideas" -- delivered a strong earnings beat versus consensus, with growing production/lower costs in the second half of 2024 as expected (despite a modest downward guidance revision at Rainy River). It said the declaration of commercial production at New Afton and first ore from the UG Main zone at Rainy River (both ahead of schedule) are "significant de-risking catalysts", and "bode well" for the expected production and FCF growth over the next two years (in line with guidance). Longer-term value could surface from exploration and mine-life extension at both New Afton and Rainy River, RBC added.
National Bank noted New Gold reported an Adjusted EPS of US$0.08, a beat to the NBF estimate and consensus at US$0.04, despite lower production. The bank noted C-Zone and U/G main hit milestones ahead of schedule.
National Bank said overall, given the headline beat, lowered production guidance and ahead of schedule project advancement it expects New Gold's shares "to potentially trade off" at market open today if investors focus more on the company's near-term guidance revision. But the bank believes it could recover throughout the day given the numerous positives reported that bode well for the 2025 and beyond outlook.
National's Outperform rating is based on New Gold's high exposure to a low-risk jurisdiction, improved FCF profile going forward as well as the good start to the C-Zone ramp-up to date.
New Gold's share price was down 4.4% to $3.87 on TSX.
Price: 3.88, Change: -0.18, Percent Change: -4.32
3 hours ago by MT Newswires
10:20 AM EDT, 10/30/2024 (MT Newswires) -- New Gold (NGD.TO) maintained its stock rating and price target at RBC Capital Markets and National Bank of Canada, according to notes published Tuesday.
RBC kept New Gold's Outperform rating and US$3.50 price target while National Bank maintained the company's Outperform, Risk Rating Speculative, and C$5.50 price target.
In RBC's view, NGD -- "one of our global mining best ideas" -- delivered a strong earnings beat versus consensus, with growing production/lower costs in the second half of 2024 as expected (despite a modest downward guidance revision at Rainy River). It said the declaration of commercial production at New Afton and first ore from the UG Main zone at Rainy River (both ahead of schedule) are "significant de-risking catalysts", and "bode well" for the expected production and FCF growth over the next two years (in line with guidance). Longer-term value could surface from exploration and mine-life extension at both New Afton and Rainy River, RBC added.
National Bank noted New Gold reported an Adjusted EPS of US$0.08, a beat to the NBF estimate and consensus at US$0.04, despite lower production. The bank noted C-Zone and U/G main hit milestones ahead of schedule.
National Bank said overall, given the headline beat, lowered production guidance and ahead of schedule project advancement it expects New Gold's shares "to potentially trade off" at market open today if investors focus more on the company's near-term guidance revision. But the bank believes it could recover throughout the day given the numerous positives reported that bode well for the 2025 and beyond outlook.
National's Outperform rating is based on New Gold's high exposure to a low-risk jurisdiction, improved FCF profile going forward as well as the good start to the C-Zone ramp-up to date.
New Gold's share price was down 4.4% to $3.87 on TSX.
Price: 3.88, Change: -0.18, Percent Change: -4.32