B.Riley FBR analyst Lucas Pipes reiterated a Buy rating on Novagold Resources Inc New (NG) today and set a price target of $9. The company’s shares closed last Monday at $7.11, close to its 52-week high of $7.25.
“We are increasing our price target for NOVAGOLD Resources (NG-US) from $8 to $9 and reiterating our Buy rating. Driving the increase in our valuation is a higher long-term gold price assumption of $1,400/oz (previously $1,350/oz). We believe our new estimate is appropriate (yet conservative) in light of recent improvements in spot prices. Overall, while NOVAGOLD has been one of the best-performing companies in our coverage universe, yielding returns of 81% YTD, we continue to believe the company is underappreciated by investors. NOVAGOLD holds a 50% interest in Donlin, one of the world’s largest undeveloped gold resources. Donlin’s size, permitting status, and location in a safe mining jurisdiction, make it one of the premier assets for exposure to higher gold prices.”
According to TipRanks.com, Pipes is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -4.7% and a 40.8% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Peabody Energy Corporation Comm, Covia Holdings Corporation, and CONSOL Coal Resources LP.
Currently, the analyst consensus on Novagold Resources Inc New is a Moderate Buy with an average price target of $9.
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Based on Novagold Resources Inc New’s latest earnings release for the quarter ending May 31, the company reported a quarterly GAAP net loss of $5.52 million. In comparison, last year the company had a GAAP net loss of $9.63 million.
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NovaGold Resources, Inc. engages in the acquisition, exploration, and development of metal properties primarily located in Alaska and British Columbia. Its developments include Donlin Gold and Galore Creek projects.