Matt Murphy, an analyst from BMO Capital, has initiated a new Buy rating on Kinross Gold (KGC).
Matt Murphy has given his Buy rating due to a combination of factors that highlight Kinross Gold’s strong financial position and operational performance. The company boasts a portfolio of low-risk, cost-effective assets that generate substantial free cash flow, particularly from its core assets like Tasiast, Paracatu, and La Coipa. These assets provide a stable operating base, while the company is also making strategic enhancements to its higher-cost US assets, such as Fort Knox, to maintain competitiveness.
Kinross is expected to have excess cash, as it has successfully executed its plans, keeping cost inflation low and expanding margins. The company’s strong balance sheet, with net debt expected to be only $0.8 billion by the end of 2024, positions it well for future growth. Additionally, Kinross is trading at a discount compared to its historical multiples, offering a good return on invested capital and a free cash flow yield above its peers. These factors, combined with steady execution and high gold prices, support the Buy rating.
In another report released yesterday, Scotiabank also maintained a Buy rating on the stock with a $16.00 price target.
Based on the recent corporate insider activity of 81 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of KGC in relation to earlier this year.