- Tumbling gold prices could cause shares of Barrick Gold (ABX) and Newmont Mining (NYSE:NEM) to continue their downward slide, but Goldcorp (NYSE:GG) could enjoy gains, Morgan Stanley analyst Evan Kurtz says.
- While continuing to rate ABX and NEM as Equal Weight, Kurtz rates GG at Overweight as a good entry point in the stock, believing GG's management has set the operational bar at an achievable level.
- Kurtz prefers GG because the stock is pricing in gold below the strip, based on NAV; production guidance for 2016-18 appears conservative; and it is less likely to start work on a large greenfield project or be acquisitive in a big way due to its steady medium-term production and large resource base.