February 13, 2013 at 13:42 PM EST
Citigroup Lowers Price Target on Newmont Mining (NEM)

Citigroup reported on Wednesday that they have reduced their price target on gold producer, Newmont Mining Corp(NEM).

The firm has reaffirmed a “Neutral” rating on NEM, and has lowered the company’s price target from $50 to $49. This price target suggests an 8% increase from the stock’s current price of $44.99.

An analyst from the firm commented, “incorporating actual 4Q12 gold prices and our revised forecast for 2013 brings our estimate down to $3.90 from $4.14. Newmont already provided 2013 guidance, expecting production to be stable YoY at the midpoint of guidance (4,950k ozs) while unit cash cost should climb by 5.6% (+$38/oz) to $713/oz. – Newmont Mining (NEM) – 4Q12 Output Disappoints, Cutting 2013 Est’s to Reflect Guidance.) We are taking our price target down slightly to $49/share from $50. We value the stock based on a weighted average of multiple and DCF valuation, and we continue to apply a 14.0 multiple to EPS but we shift valuation out to 2014.”

Newmont Mining shares were down 28 cents, or -0.62% during Wednesday afternoon trading. The stock has declined -24% in the past year.

The Bottom Line
Shares of Newmont Mining Corp(NEM) have a 3.11% yield, based on Wednesday afternoon’s price of $44.99.

Newmont Mining Corp(NEM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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