The Motley Fool·2025-04-11 16:28Core Viewpoint - The gold stocks are showing resilience amidst market volatility, with UBS raising price targets for Barrick Gold and Newmont, indicating a positive outlook for the gold industry [3][4][5]. Group 1: Market Performance - Major market indices are slightly up as investors react to economic news regarding U.S. and China tariffs [1] - Gold stocks are performing well, with Barrick Gold up 5.6%, Newmont up 6.6%, and Coeur Mining up 7.6% [2]. Group 2: UBS Analysis - UBS has raised Barrick's price target to $25 per share and upgraded Newmont to a buy rating with a new price target of $60, reflecting a 20% increase [3][4]. - UBS predicts a "stronger for longer gold price environment," forecasting gold prices to rise to $3,500 per ounce by 2026 [5][6]. Group 3: Company Valuations - Newmont is valued at a forward P/E ratio of 8.4, indicating strong profit growth expectations, while Barrick has a forward P/E of 11.6 [8]. - Coeur Mining has the highest trailing P/E at 36.6, with a forward P/E of 13.7, but is not generating positive free cash flow [9]. Group 4: Investment Recommendations - Barrick is considered a strong investment option due to its reasonable valuation, lower leverage with $1.2 billion more debt than cash, and substantial free cash flow of $1.3 billion [10][11]. - Barrick also offers a modest dividend yield of 2.3%, making it an attractive choice for investors looking to capitalize on the positive outlook for gold stocks [12].