Citigroup Lowers Barrick Gold Price Target to $17.00

Barrick Gold (NYSE:GOLD) has recently experienced a decrease in its price target from investment analysts at Citigroup. In a report released on Friday, Citigroup adjusted their price objective for Barrick Gold shares from $23.00 to $17.00. This new target indicates a ‘neutral’ rating for the company.

The new price target suggests that there is a potential upside of 8.97% based on the company's most recent closing price. Analysts typically adjust price targets based on various factors, including market conditions and company performance, and this move reflects Citigroup's current outlook on the gold and copper producer.

Recent Analyst Ratings

Barrick Gold's stock has been widely analyzed by various financial institutions. Jefferies Financial Group, for example, recently increased their price objective from $23.00 to $24.00, maintaining a ‘buy’ rating for the company as of September 13. In contrast, CIBC World Markets downgraded Barrick Gold from a ‘strong buy’ to a ‘hold’ rating on November 25.

Additionally, Argus boosted their rating from ‘hold’ to ‘buy’ with a target price of $24.00, while TD Securities lowered their target from $26.00 to $25.00, still holding a ‘buy’ rating. Currently, according to MarketBeat, five analysts rate Barrick Gold as a hold, while eight have issued a buy rating. The average rating is classified as a ‘Moderate Buy’ with an average target price of $24.82.

Market Performance

On the day of Citigroup's announcement, Barrick Gold shares increased by 2.4%, reaching $15.60 with a trading volume of over 15 million shares. This figure represents a decrease from its average trading volume of about 21 million shares. The current ratios indicate a stable financial situation, with a current ratio of 2.65 and a quick ratio of 2.06. Barrick Gold has a market capitalization of approximately $27.16 billion, a price-to-earnings ratio of 16.77, and a beta of 0.53.

In terms of historical performance, the stock has traded within a 52-week range of $13.76 to $21.35.

Institutional Investment Activity

There has been notable activity concerning institutional investors holding Barrick Gold shares. For instance, Liontrust Investment Partners LLP increased its holdings by 83.5% in the second quarter, now owning 6,146 shares worth around $102,000. Allspring Global Investments also grew its stake by 1.2% in the same period.

Other investors, such as Solstein Capital and Skylands Capital, have also made adjustments to their holdings, reflecting a growing interest among institutional investors in Barrick Gold's potential. Currently, approximately 62.85% of the company's stock is owned by institutional and hedge fund investors.

Barrick Gold Overview

Barrick Gold Corporation is recognized as a leading producer of gold and copper. Their shares are traded on both the New York Stock Exchange (under the symbol GOLD) and the Toronto Stock Exchange (under ABX). Barrick has a history of strategic mergers and joint ventures, such as its merger with Randgold Resources in January 2019 and its joint venture with Newmont Corporation in Nevada.

With all these aspects taken into consideration, the recent downgrade by Citigroup reflects an ongoing assessment of the company's market position amid fluctuating commodity prices and investor sentiment.

Barrick, Gold, Citigroup