Key Highlights:
- Barrick Gold Corp. (GOLD, Financial) is set to divest its 50% stake in the Donlin Gold project for $1 billion in cash.
- Wall Street analysts forecast a potential 16.45% upside in Barrick Gold's stock price.
- The company's GF Value suggests a 9% potential gain from current levels.
Barrick Gold Sells Stake in Donlin Gold Project
Barrick Gold Corp (GOLD) has announced the sale of its 50% stake in Alaska's Donlin Gold project, a strategic move valued at $1 billion in cash. This transaction involves Paulson Advisers and NovaGold Resources (NG), which will reshape the project's ownership structure. As a result, NovaGold will see its stake increase to 60%, while Paulson will gain a 40% interest. This shift in ownership is expected to impact the future development and potential profitability of the project.
Wall Street Analysts Forecast Significant Upside
According to the projections from 14 analysts, Barrick Gold Corp (GOLD, Financial) is poised for an average target price of $23.81 over the next year. This includes a high estimate of $31.50 and a low estimate of $19.00, indicating a potential 16.45% upside from its current trading price of $20.45. Investors can explore more detailed projections on the Barrick Gold Corp (GOLD) Forecast page.
Additionally, the consensus recommendation from 16 brokerage firms positions Barrick Gold Corp (GOLD, Financial) at an average rating of 2.1, which translates to an "Outperform" status. The rating scale ranges from 1 to 5, where 1 denotes a Strong Buy and 5 signifies Sell, further supporting a positive outlook for the stock.
Evaluating Barrick Gold's GF Value
GuruFocus estimates place the one-year GF Value for Barrick Gold Corp (GOLD, Financial) at $22.29. This suggests a potential upside of 9% from the current market price of $20.45. The GF Value represents an estimate of the stock's fair trading value, derived from historical trading multiples, past business growth, and future performance projections. Investors seeking comprehensive data can refer to the Barrick Gold Corp (GOLD) Summary page.
