JP Morgan is bullish on the outlook for North American gold mining companies: Barrick Gold (B.US) receives a "buy" rating, while Agnico Eagle Mines (AEM.US) is temporarily rated as "neutral" due to saturated valuation.

J.P. Morgan initiated coverage of the North American gold industry for the first time on Thursday, giving Barrick Gold Corp (B.US) a "overweight" rating with a target price of $68, while giving Agnico Eagle Mines Limited (AEM.US) a "neutral" rating with a target price of $248. J.P. Morgan believes that with support from central bank purchases and uncertainty in U.S. policy, the short-term and long-term prospects for gold are bullish. J.P. Morgan analyst Bennett Moore stated that he sees Agnico Eagle Mines Limited as a leading company in the field, with strengths in outstanding operations, attractive cost structures, and low-risk regional distribution. Despite these advantages coming with a premium, considering that the next phase of growth for Agnico Eagle Mines Limited is mainly focused on the 2030s and the current valuation is relatively saturated, Moore said he will wait for a better buying opportunity. On the other hand, Barrick Gold Corp has world-class reserve bases and strong recent internal growth potential, but its performance record is mixed, currently in a management transition period, and its business involves higher-risk areas. Despite this, its stock price is at a significant discount compared to global peers, but there may be some unique positive factors in the future, such as the restart or sale of the Loulo-Gounkoto mine and an update on the resource reserves of the Fourmile mine. Both Barrick Gold Corp and Agnico Eagle Mines Limited reached multi-year highs of $54.69 and $225 in early trading on Thursday, but then fell back, closing down 1.76% and 3.35% respectively, as gold futures prices retreated from historical highs above $5500 per ounce.