Newcrest Mining (NCM)
Analyst: Rahul Anand, Morgan Stanley
Recommendation: Equal weight (previously underweight)
Price target: A$20.75 (previously
Wednesday’s close: $22.30
Reason: We have moved NCM to an EW rating with an updated price target of A$20.75/share, driven by minimal downside providing valuation support for the equity. Further, EV/EBITDA multiples of 8.0x for FY19 and 6.2x for FY20, based on our estimates, are now below the three-year historical average of 9.0x (FY15-FY17). Company specific catalysts for NCM include results for the studies underway at Wafi-Golpu and Cadia East, which are not expected until 2Q and 3Q2018, respecti...