Newmont upgraded to Outperformer from Neutral at CIBC

CIBC analyst Anita Soni upgraded Newmont to Outperformer from Neutral with a price target of $61, up from $46. With interest rate cuts still looming, and the possibility of a very dovish U.S. President who may test the independence of the Federal Reserve, CIBC expects that rates will fall, while inflation remains persistent, fueled by fiscal stimulus and softer rates, the analyst tells inventors in a research note. “All this bodes well for gold,” the firm adds. CIBC raised its old price forecast to $1,975/oz from $1,875/oz based on marginal costs of extraction and persistent capex inflation and upgraded three names. The analyst says that given the U.S. macroeconomic outlook, more U.S. investors will become interested in gold, and will gravitate to Newmont as the largest producer in the space.