Newmont Mining (NEM) received a reduction to its price target Monday from RBC Capital Markets as the firm cited integration risks for the gold miner’s pending acquisition of Goldcorp.
The new price target from RBC is $39 per share, down from $41. The reduced target is still above the stock’s Friday closing price of $36.50 even as RBC kept its investment rating on the shares at underperform. The shares edged up 0.4% to $36.66 in recent Monday pre-market trading.
This comes after Goldcorp shareholders last week voted in favor of the deal, moving it one step closer to completion. A vote by Newmont’s shareholders is expected this Thursday, April 11. The company’s board is unanimously recommending that shareholders vote in favor of the deal.
In a Monday note to clients, RBC said “our financial estimates for Newmont have improved as a result of the Goldcorp takeover and Newmont-Barrick Nevada JV agreement.”
However, it added, “a higher re-rating requires evidence of a successful integration of the core Goldcorp assets and financial benefits from the Nevada JV synergies.”