BMO Capital Lowers Target for Newmont Corporation (NEM) But Maintains Outperform Rating

Newmont Corporation (NYSE:NEM) is among the 15 Undervalued Momentum Stocks That Are Taking Off.

Following the company’s Q4 results on February 19, BMO Capital Markets reduced its price target on Newmont Corporation (NYSE:NEM) from $145 to $140 but maintained its positive outlook with an Outperform rating. However, the analysts highlighted some concerns over the outlook, including elevated costs and lower production.

In its Q4 2025 results, Newmont topped consensus EPS estimates of $2.00 (LSEG) by reporting earnings of $2.52 per share or $2.8 billion, which almost doubled year over year (YoY). Despite 14% lower production on a YoY basis, FY 2025 results were bolstered by a 45% higher average realized gold price. The company also reported a record $2.8 billion in free cash flow in Q4, bringing the year’s total to $7.3 billion. In addition, it reduced its debt by $3.4 billion in 2025, ending the year with a net cash position of $2.1 billion, including $7.6 billion in cash.

For FY 2026, Newmont Corporation (NYSE:NEM) guided for attributable production to be approximately 5.3 million gold ounces, down from 5.89 million in 2025. While production is impacted by planned mine sequencing and lower contribution from some mines, management expects to continue focusing on lowering costs through its cost and productivity programs. The management further noted:

”2026 represents a trough in our production cycle due to planned mine sequencing across several operations as we position the portfolio to return to production growth in 2027 and beyond, maintaining our longer-term outlook of approximately 6 million ounces of gold and 150,000 tonnes of copper annually.”

Newmont Corporation (NYSE:NEM) shares have performed strongly, with over 168% returns in the past year and over 22% gains in 2026 as of February 20. The stock currently trades 10% below its 52-week high of $134.9.

Newmont Corporation (NYSE:NEM) is the world’s leading gold company and a producer of copper, zinc, lead, and silver. The company’s portfolio of assets is focused on mining jurisdictions in Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea.

While we acknowledge the potential of NEM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT:  12 Best Software Infrastructure Stocks to Buy According to Hedge Funds and Cathie Wood’s Stock Portfolio: Top 10 Stocks to Buy.