June 12, 2018 / 12:45 PM / 6 months ago

BUZZ-MS says prefers Newmont Mining over Barrick Gold

** Morgan Stanley says it prefers U.S. gold miner Newmont Mining Corp over Canada’s Barrick Gold Corp, in the near term

** Upgrades Newmont to “overweight” from “equal-weight”, raises PT to $40 from $37

** Downgrades U.S.-listed shares of Barrick to “underweight” from “equal-weight”, cuts PT to $12 from $14 due to risks in negotiation with Tanzania over lifting the export ban on its local operations

** Brokerage says output from existing NEM mines to decline slower than ABS’ existing mines, additionally NEM to start up projects and likely see approval of more projects this year while ABX projects start up only from 2021

** MS also says prefers NEM as co has nearly no leverage, lower risk and stronger execution

** 10 of 18 brokerages rate NEM “buy” or higher, 6 “hold” and 2 “sell” or lower; their median PT is $45

** 4 of 22 brokerages rate ABX “buy” or higher, 15 “hold” and 3 “sell” or lower; their median PT is $15.50

** Up to Monday’s close, NEM had risen 2.8 pct this year, while ABX fell 8.8 pct in the same period (Reporting by Karan Nagarkatti)

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