Citi analysts highlight the "high takeover appeal" that is currently swirling over the Newcrest Mining share price. They believe it is far more cost-effective for one of the international majors in the sector to buy Newcrest than to try to build a similar suite of assets from scratch.
Newcrest’s assets are low-opex, long-life point out the analysts. Buy rating retained. Target $25.80.
Target price is $25.80.Current Price is $21.01. Difference: $4.79 – (brackets indicate current price is over target). If NCM meets the Citi target it will return approximately 19% (excluding dividends, fees and charges – negative figures indicate an expected loss).