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AngloGold Ashanti Shares Fall After BMO Capital Downgrade on Valuation
Shares of AngloGold Ashanti Ltd. (NYSE:AU) fell 4.8% in trading on Thursday after analysts at BMO Capital downgraded the stock, citing valuation concerns following a period of significant outperformance.
The Downgrade
BMO Capital lowered its rating on AngloGold Ashanti to Market Perform from a previous Outperform rating. The firm maintained its price target on the stock at $115 per share.
The downgrade was prompted by what BMO Capital analyst Raj Ray described as a "strong relative outperformance over the last three years." According to the analyst, this run-up has left the company's shares trading at a "meaningful price-to-net asset value premium," even as other near-term valuation metrics are considered broadly in-line with peers.
AdAnalyst's Rationale
BMO Capital noted that while near-term operations for the gold miner remain "broadly steady," future growth prospects may take time to materialize. The firm pointed to the Arthur project as a source of solid but "longer dated" growth.
Further clarity on the company's development pipeline is expected in the third quarter of 2026, which BMO said "should clarify brownfield opportunities." The analyst also commented on the company's capital return program, suggesting its $2.0 billion share buyback would likely be "deployed selectively at current levels."
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