Buy, Sell, Hold: Newcrest, Mount Gibson and Pilbara

NEWCREST upgraded; price target boost for Mount Gibson; and analysis of Pilbara’s expansion study.

Buy, Sell, Hold: Newcrest, Mount Gibson and Pilbara Buy, Sell, Hold: Newcrest, Mount Gibson and Pilbara Buy, Sell, Hold: Newcrest, Mount Gibson and Pilbara Buy, Sell, Hold: Newcrest, Mount Gibson and Pilbara Buy, Sell, Hold: Newcrest, Mount Gibson and Pilbara

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...