5 Most Promising Gold Stocks According to Analysts

2. Agnico Eagle Mines Limited (NYSE:AEM)

Number of Hedge Fund Holders: 41

Average Price Target by Analysts: $64.61

Agnico Eagle Mines Limited (NYSE:AEM) is a Canadian gold mining company. Agnico Eagle Mines Limited (NYSE:AEM) is under pressure after the company warned about rising costs in 2023. However, analysts believe Agnico Eagle Mines Limited (NYSE:AEM) is offering an attractive entry point. Its average price target set by analysts also presents a strong upside from current levels. For FY 2023 Agnico Eagle Mines Limited (NYSE:AEM) sees payable gold production to come in between 3.24 million to 3.44 million oz, compared to 3.28 million oz in 2022.

For the fourth quarter of 2022, Agnico Eagle Mines Limited (NYSE:AEM)’s adjusted EPS came in at $0.41, meeting estimates. Revenue in the quarter jumped about 45% on a YoY basis to reach $1.38 billion. However, the revenue metric missed estimates by $40 million.

As of the end of the last quarter of 2022, 41 hedge funds had stakes in Agnico Eagle Mines Limited (NYSE:AEM), compared to 39 hedge funds in the previous quarter.

Old West Management made the following comment about Agnico Eagle Mines Limited (NYSE:AEM) in its Q4 2022 investor letter:

“Agnico Eagle Mines Limited (NYSE:AEM) is the third largest gold miner in the world with mines in Canada, Australia, Finland, and Mexico. Although we have long respected the company, we became shareholders when they acquired our portfolio holding, Kirkland Lake Gold. Agnico chairman Sean Boyd is one of the most respected executives in the mining industry. He was appointed CEO in 1998 and was recently appointed Executive Chairman. Boyd is a large shareholder and perfectly fits our owner/manager role. This year the company is projected to make nearly $1 billion in net income on $5.8 billion in revenue with $758 million of free cash flow. Net income has been growing 15% per year for several years. Agnico has a fortress balance sheet with $1.3 billion of long term debt, which is only 2 times EBITDA, and $820 million cash in the bank. The stock trades at $55 per share, which is 26 times earnings with a 2.9% dividend yield.”