Barrick Gold Receives Bullish Price Target Revision Amid Record Metals Rally

Barrick Mining CA0679011084

Shares of Barrick Gold are trading near a 52-week high, buoyed by a confluence of positive developments. A significant analyst upgrade, record-setting precious metals prices, and an upcoming leadership transition are fueling investor optimism. Market participants are also closely monitoring progress on a potential multi-billion dollar corporate separation.

The company has announced a key appointment to its executive team. Helen Cai has been named the new Senior Executive Vice President and Chief Financial Officer of Barrick Gold. Her appointment is scheduled to take effect on March 1, 2026. The timing aligns with the release and filing of the company's annual financial statements. This move is viewed by the market as enhancing continuity within the finance department, particularly regarding upcoming strategic initiatives.

Major Analyst Upgrade Highlights Upside Potential

The recent surge in positive sentiment was triggered by a substantial revision from Scotiabank. The bank's analyst, Tanya Jakusconek, raised her price target for Barrick Gold from $43 to $63 per share. Based on recent trading levels, this new target implies considerable further upside for the stock.

Scotiabank maintained its "Sector Outperform" rating. The adjustment is primarily driven by the extraordinary price environment for precious metals. Gold has recently surpassed $5,100 per ounce, while silver trades above $110. In this context, analysts are upwardly revising profit estimates for major producers.

Key Figures:
* Scotiabank's Revised Target: $63.00 (previously $43.00)
* 12-Month Performance: +226.1%
* Market Capitalization: Approximately $86.5 billion

The stock's powerful performance over the past year reflects both the boom in metals prices and heightened expectations for future earnings power.

Pending Spin-Off Hinges on Newmont Agreement

Despite the bullish backdrop, the company faces a complex structural undertaking. Barrick is planning to spin off its North American assets into a separate, publicly traded entity. This package is estimated to be worth around $42 billion.

However, the execution of this plan critically depends on approval from partner Newmont Corporation. The central issue is the Nevada Gold Mines (NGM) joint venture, in which Barrick holds a 61.5% stake and Newmont owns 38.5%. Existing contractual agreements grant Newmont a right of first refusal and require its consent for major structural changes.

This also pertains to potential capital investments in the promising Fourmile project. Without Newmont's cooperation, the planned initial public offering for the North American unit cannot proceed as envisioned. Consequently, a concrete timeline for this potential value-unlocking event remains uncertain.

Valuation and Upcoming Financial Results

From a valuation perspective, some analysis suggests the current share price does not yet fully reflect the cash flow potential with gold prices sustained above $5,000 per ounce. This places a significant focus on the next set of financial results.

Barrick Gold is scheduled to report its fourth-quarter and full-year 2025 earnings on February 5, 2026. Market consensus anticipates a robust report. On a twelve-month basis, earnings per share (EPS) growth exceeds 72%. The stock currently trades at a price-to-earnings (P/E) ratio of approximately 24.2.

Technically, the shares appear overbought, with the Relative Strength Index (RSI) reading around 76. Nevertheless, as long as the combination of high precious metals prices and improving earnings metrics persists, the existing upward trend remains fundamentally supported.

@ boerse-global.de | CA0679011084 BARRICK