Citigroup Says Buy Barrick Gold, but Sell Agnico-Eagle Mines

Share This Article
August 2, 2016 8:43am NYSE:ABX NYSE:AEM

gold miner pickAnalysts at Citigroup on Tuesday published some strongly differing opinions on a pair of large-cap gold miners — and the ramifications could be big for gold mining ETFs.

Barrick is a Buy
The firm initiated coverage on Barrick Gold Corporation (USA) (NYSE:ABX) with a “Buy” rating and $29 price target. That target represents a 30.45% upside over the stock’s previous closing price of $22.23.

ABX shares rose $0.23 (+1.03%) to $22.46 in premarket trading Tuesday. Barrick shares have surged 200% since the start of the year, versus just a 6.4% gain in the S&P 500.


Agnico-Eagle Mines is a Sell
Meanwhile, the firm started coverage on Agnico-Eagle Mines Ltd (USA) (NYSE:AEM) with a “Sell” rating and $44 price target. That target suggests a big 25% downside to AEM’s Monday closing price.

AEM shares were unchanged at $58.89 in premarket trading Tuesday. Agnico-Eagle stock has gained 124% year-to-date.


Gold Miners ETF in Focus
Citigroup’s strong opinions on ABX and AEM will likely have an impact on the red-hot Market Vectors Gold Miners ETF (NYSE:GDX), which counts those two stocks among its major holdings:

Data: VanEck

As you can see in the table above, ABX is the largest holding within GDX, representing a massive 10.43% of the fund’s net assets. AEM is the sixth largest holding of GDX, with 5.2% of its net assets.

The GDX rose $0.42 (+1.36%) to $31.35 per share in premarket trading Tuesday, hitting fresh three-year highs. GDX has gained more than 125% year-to-date.


9 "Must Own" Growth Stocks For 2019

Read Next

Get Free Updates

Join over 50,000 investors who get the latest news from!

Most Popular

Explore More from

Free Daily Newsletter

Get daily ETF insights from our market experts. Never miss another important market development again! respects your privacy.

Best ETFs

We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system.

View Top Rated ETFs

Best Categories

We've ranked dozens of ETF categories based on relative performance.

Best ETF Categories