Monday, November 1, 2010

Barrick (NYSE:ABX) Receives Mixed Ratings Ahead of QE Announcement

Barrick Gold (NYSE:ABX) will almost always have the challenge of moving up significantly over a short period of time because of their size, and that seems to affect the ratings companies like Mackie and BMO Capital put on the gold mining giant, which went in opposite directions on Friday.

Mackie downgraded Barrick from "Buy" to "Accumulate," while BMO Capital upgraded them from "Market Perform" to "Outperform."

It all depends on how most financial institutions look on valuation and how a company the size of Barrick will be able to grow.

If gold prices are the sole or key indicator used to measure the growth of a gold miner, then it will definitely be viewed strongly, although how management controls operational costs is right there alongside of it, at least it should be.

Barrick closed Friday at $48.09, gaining $1.07, or 2.28 percent. BMO increased their price target on them from $55 to $60.

Barrick should benefit from the expected quantitative easing announcement the Fed is about to make, as should the vast majority of gold and commodity miners.

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