Analyst Update: Barrick Gold Corporation, Randgold Resources Ltd., and Royal Gold, Inc

Analysts adjusted their ratings and price targets on Barrick Gold Corporation (USA) (NYSE:ABX), Randgold Resources Ltd. (ADR) (NASDAQ:GOLD), and Royal Gold, Inc (USA) (NASDAQ:RGLD)

by Kirra Fedyszyn

Published on Apr 7, 2016 at 3:25 PM

Analysts are weighing in on gold stocks Barrick Gold Corporation (USA) (NYSE:ABX)Randgold Resources Ltd. (ADR) (NASDAQ:GOLD), and Royal Gold, Inc (USA) (NASDAQ:RGLD). Here's a quick roundup of today's brokerage notes on ABX, GOLD, and RGLD.

  • ABX is just one of many gold stocks getting a boost from Canaccord Genuity today, as the brokerage firm raised its price target on Barrick Gold Corporation to C$22 from C$21.50. The stock has added 4.1% to trade at $14.54, bringing its year-to-date lead to 97% -- with help from the rising price of gold, as well as support from its rising 40-day moving average. Despite this technical strength, sentiment on ABX remains bearishly skewed, with 71% of analysts calling ABX a "hold" or worse. And near-term option traders have been unusually put-heavy, with the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.21 in the 91st percentile of its annual range.
  • GOLD received price-target hikes at Credit Suisse, to 6,700P from 6,400P, and at Dundee Capital, to $105 from $94. These bullish brokerage notes have boosted Randgold Resources Ltd. 2.8% to $92.78. The stock has been consolidating in the $88-$94 range since an early February bull gap, briefly tapping a three-year high at $96.50 in mid-March. But eight of 10 analysts still rate GOLD a "hold" or "strong sell." And at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day put/call volume ratio of 0.70 sits higher than 77% of the past year's readings, indicating traders have been picking up bearish bets at an unusually rapid rate during the last 10 weeks.
  • RGLD is up 3.1% at $51.82 after Dundee Capital upped its price target on the stock to $58 from $54, shaking off a price-target cut to $58 from $60 at National Bank Financial last night. Royal Gold, Inc has added 110% since hitting a seven-year low of $24.68 in late January, and both analysts and option traders appear to be in the equity's corner. Two-thirds of the brokerage firms providing coverage call RGDL a "strong buy," without a single "sell" rating on the books. At the ISE, CBOE, and PHLX, traders have bought to open nearly five RGLD calls for each put over the last 50 sessions -- with the resulting ratio of 4.76 in the 82nd percentile of its annual range.
For other stocks in analysts' crosshairs, read Analyst Upgrades: TransEnterix, Inc., Ollie's Bargain Outlet Holdings Inc, and Bed Bath & Beyond Inc. and Analyst Downgrades: Twitter Inc, Verizon Communications Inc., and Apple Inc.

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