** TD Cowen expects a strong quarter for gold companies, with record margins supported by high metals prices
** Adds that given the recent discipline shown by producers, it expects record free cash flow
** Brokerage remains positive on the sector, with the U.S. Federal Reserve expected to continue easing interest rates, and mounting geopolitical uncertainty
** Brokerage forecasts record margins in Q2 and cumulative free cash flow of $3.8 billion
** It expects the recent increase in capital returns (both buybacks and increased dividends) to continue, which should help boost sector valuations
Brokerage changes price target on the following companies:
Company | New PT | Old PT | Upside to stock's last close |
Agnico Eagle Mines AEM.N | $152 | $135 | 27.7% |
Barrick Mining B.N | $30 | $27 | 42.7% |
Alamos Gold AGI.TO | C$48 | C$45 | 32% |
Newmont NEM.N | $64 | $59 | 11.6% |
Kinross Gold KGC.N | $22 | $19 | 42.8% |
K92 Mining KNT.TO | C$19 | C$18 | 15.1% |
G Mining Ventures GMIN.TO | C$28 | C$25 | 66.8% |
(Reporting by Pooja Menon in Bengaluru)
((Pooja.Menon@thomsonreuters.com;))