UBS Analyst Reiterates Neutral Rating for Barrick Gold Corporation (USA) (ABX)
UBS analyst Matt Murphy reiterates his Neutral rating for Barrick Gold Corporation (USA) (NYSE:ABX) as gold stocks continue to march forward in the wake of the Brexit.
The analyst notes that the key drivers that influence the price of gold and gold affiliated stocks are:
- Low to negative real rates
- The dollar peaking against developed market currencies
- General macro risks
The analyst believes that the United Kingdom’s decision to ditch the EU reinforces these themes that have initiated UBS to upgrade their forecast price of gold from $1,250-1,300 per ounce to $1,280- 1,450 per ounce in 2016-18E.
The analyst believes that Barrick’s gold price of $1,400 per ounce limits upside for investors in the current macro-risk landscape. The analyst also explains that government initiatives put in place to stabilize macro risk add to his Neutral rating.
According to TipRanks, Matt Murphy is a 4.5 star analyst, with a success rate of 67% and an average return of 21.8%