S&P Capital IQ Reiterates its STRONG BUY Rating on Barrick Gold, Target Price Raised

October 29 00:00 2011

NEW YORK, October 29 (RainbowNewsLine.com) – Analyst Leo Larkin of S&P Capital IQ maintains his STRONG BUY rating on the shares of Barrick Gold (NYSE: ABX), while raising his estimates for the company. The 12-month target price has been raised from $75 to $80.

Analyst Leo Larkin, in a research note published yesterday mentions that the company has posted its Q3 EPS ahead of the estimates and the consensus, with a 44% growth in sales. The outperformance was driven by Barrick Gold’s outstanding margins in gold compensating for lower copper prices, the analyst says. The EPS estimates for 2011 2012 have been raised from $4.51 to $4.94 and from $4.80 to $5.58, respectively, to reflect Q3 results and positive sales and margin outlook. The analyst believes that ABX shares are trading at compelling levels.