UBS Remains Sidelined on Barrick Gold (ABX) as Brexit Strengthens Gold Drivers

UBS reiterated a Neutral rating on Barrick Gold (NYSE: ABX), and raised the price target to $21.50 (from $15.00), as the UK's vote to leave the EU strengthens Key gold drivers.

A UBS Analyst commented, "Key gold drivers are 1) low/negative real rates, 2) the dollar peaking against DM currencies, and 3) macro risks. The UK's vote to leave the EU reinforces these themes, which is at the core of UBS' gold upgrade from US$1,250-1,300/oz to US$1,280- 1,450/oz in 2016-18E. However, with Barrick now pricing in gold at ~US$,1400/oz, in our view, we believe upside is limited in the current macro risk environment. Declining production growth and possible government stimulus to stabilise macro risk are at the core of our Neutral rating."

For an analyst ratings summary and ratings history on Barrick Gold click here. For more ratings news on Barrick Gold click here.

Shares of Barrick Gold closed at $23.16 yesterday.

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