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TD Cowen flags Barrick and Equinox among Canada best stock picks
TD Cowen says Barrick is undervalued versus large-cap North American peers, trading at a 25% discount, and it targets free cash flow of about $8 billion over the coming year.
Mining.com reports that TD Cowen named Barrick Mining and Equinox Gold among 24 Canadian stocks it views as having strong near-term upside, citing valuation gaps, improving production, and a pipeline of growth projects. The firm’s report, called “Canada Best Ideas,” also lists Hudbay Minerals and Royal Gold as top picks for the period ahead.
For Barrick, TD Cowen pointed to catalysts including improving operational execution, strong free cash flow, and a planned IPO of the miner’s North American assets. The brokerage said Barrick trades at a 25% discount relative to large capitalization North American miners and that its $59 (C$82.60) target implies a 38% return versus Monday’s New York close of $42.69.
TD Cowen estimated Barrick could generate about $8 billion in consolidated free cash flow over the next year, implying an 11% free cash flow yield. It also said Barrick’s recently completed Fourmile transaction with Newmont clears a key hurdle for the North American IPO and could accelerate development of the Nevada project.
For Equinox Gold, TD Cowen said the shares have potential to function as a core holding after its acquisition of Orla Mining. The brokerage set a target price of C$20 ($14.29), implying a 17% return versus Monday’s TSX close of C$17.09, and estimated Equinox’s net asset value discount at 20% compared with peers.
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