Major Funds Accumulate Barrick Shares Amid Strategic Revamp

Barrick CA06849F1080

A significant shift in sentiment is underway for Barrick Gold, driven by a prominent analyst upgrade and substantial buying activity from heavyweight institutional investors. The catalyst is a strategic repositioning by the Canadian gold and copper producer that has captured the attention of professional money managers.

The fundamental case for the company received a boost with its latest quarterly results. For the third quarter, Barrick exceeded analyst expectations, reporting earnings per share of $0.58 against a consensus estimate of $0.57. Revenue saw a substantial increase of 23.2%, reaching $4.19 billion. Concurrently, the board approved a raise in the quarterly dividend to $0.175 per share.

Improving production levels coupled with favorable gold prices have significantly strengthened the company's free cash flow generation. Barrick has reaffirmed its full-year guidance while continuing to invest in growth-oriented projects, such as the Fourmile discovery in Nevada.

Analyst Sees Significant Upside

Adding momentum to this positive backdrop, BNP Paribas Exane has revised its rating on Barrick shares upward from "Neutral" to "Outperform." The firm has set a price target of $50 per share, which implies an approximate 22% upside from the current trading level near $41.

This optimistic assessment is directly tied to Barrick's announced plan to spin off its North American gold assets through a public listing. The proposed structure would allow Barrick to retain majority control of the new entity, which is designed to attract investors specifically interested in assets located in lower-risk jurisdictions like Nevada and the Dominican Republic.

Institutional Buying Spree Evident

Recent regulatory filings reveal coordinated accumulation by several major institutional players, coinciding with the analyst upgrade:

• Amundi established a new position comprising roughly 4.68 million shares.
• Bank of Nova Scotia purchased approximately 4.49 million shares, a transaction valued at nearly $93.5 million.
• Cary Street Partners acquired 217,510 shares.
• Vanguard Group added to its already substantial existing stake.

This synchronized activity from multiple large-scale investors suggests that professional asset managers view the planned corporate restructuring as a potential catalyst for value creation.

Unlocking Value Through Simplification

Market observers note that the planned initial public offering (IPO) of the North American portfolio could help eliminate the so-called "conglomerate discount" often applied to global mining giants with operations spread across higher-risk regions. By creating a pure-play North American gold vehicle, Barrick aims to achieve a clearer valuation for these core assets. The coming months will determine if this strategic move triggers the anticipated re-rating by the broader market.