On November 20, news broke that jpmorgan analysts upgraded the rating of $Newmont (NEM.US)$ stocks from 'neutral' to 'shareholding.' This upgrade is mainly based on newmont's updated production guidance and positive asset sale plans as catalysts. jpmorgan analysts believe that newmont's revised gold and copper mid-term production targets, as well as the latest progress at major operational sites, all indicate a more optimistic outlook.

Specifically, jpmorgan stated that this rating upgrade reflects not only an adjustment in newmont's valuation methodology but also a revised target price of 72.50 australian dollar, slightly lower than the previous 74.00 australian dollar. This valuation combines discounted cash flow (10% share) and pe model (90% share), a combination reflecting the preferences of usa investors, as most of newmont's trading activities currently take place in the usa.

jpmorgan's reassessment of newmont was conducted after on-site visits to its australian business in tanami and cadia. In tanami, the phase two expansion project is expected to be operational in the second half of 2027, with exploration and efficiency upgrades currently underway. Meanwhile, in cadia, newmont is working to strengthen its relationships with the community and regulatory agencies to obtain approval for the continued operation projects extending the mine's life beyond 2050.

At the same time, jpmorgan pointed out that newmont has set new mid-term production targets of 6 million ounces of annual gold production and 0.15 million tons of annual copper production, specifically mentioning that the production expectations for the lihir and brucejack projects in FY2025 have been downgraded, which also implies a reduction in the production expectations of the company's other sectors.

Additionally, newmont's divestiture transaction at the marcel white mine has achieved significant results, with the transaction valued at 0.81 billion dollars, far exceeding the expected 0.485 billion dollars, providing an immediate financial boost to the company. jpmorgan expects that by March 2025, newmont will further sell assets, which could serve as a short-term catalyst for the stock.

Although the discounted cash flow valuation has decreased by 20%, jpmorgan still emphasized that under the new valuation framework, newmont's stock price still has a 12% upside potential. The realization of this potential will largely depend on the 1-year EV/EBITDA multiple.

Overall, jpmorgan's positive outlook and upgraded rating for newmont reflect confidence in the company's future performance and growth potential.

As of Tuesday's closing, newmont's stock price rose nearly 2%, closing at 43.18 dollars.