Haywood Securities Maintains "Outperform" on Barrick (NYSE:ABX)

Haywood Securities reiterated its "Outperform" rating on Barrick Gold (NYSE:ABX) while keeping a price target of $56 on the gold miner.

Analysts from Haywood said this about the valuation of Barrick, “Our $56.00 target is based on an 11.5x multiple to our 2011E cash flow of US $4.70 per share at a 2011E gold price of US $1,250 per ounce. The Company’s peer group currently trades at an average of 9.8x 2011E CFPS, a multiple we expect to expand as gold trends higher in the fall, and stocks recover from the recent sell-off.”

Even with their cash costs per ounce higher for the most recent quarter, where it cost $457 an ounce to produce, the company was still able to beat earnings estimates.

Production levels are still expected to come in at from 7.6 million to 8 million ounces of gold.