Jefferies Bullish on Gold Miners Predicting Record Cash Flow and Margin Expansion by 2026

Newmont Corporation (NYSE:NEM) is one of the most profitable value stocks to invest in right now. On December 7, Jefferies raised the firm’s price target on Newmont to $120 from $113 with a Buy rating. This sentiment was announced as part of the firm’s 2026 preview for the metals and mining group. Jefferies anticipates a major strategic shift for the metals sector in 2026, maintaining a high-conviction bullish stance on gold equities while turning more cautious on copper stocks due to their elevated valuations. The firm expects gold miners to enter a period of record financial health, characterized by expanded margins and a significant surge in free cash flow throughout 2026.

Earlier on December 1, UBS analyst Daniel Major raised the firm’s price target on Newmont to $125 from $105.50 and kept a Buy rating on the shares. Major highlighted that gold maintained its bullish momentum throughout 2025 and remains well-supported heading into 2026, driven by consistent demand from both private and official sectors rather than speculative excess.

In Q3 2025, Newmont reported an adjusted net income of $1.9 billion, or $1.71 per share, which represented a 20% increase over the previous quarter and more than doubled its year-over-year results. This growth was supported by an average realized gold price of $3,539 per ounce, which helped generate $2.3 billion in cash flow from operations and $1.6 billion in free cash flow for the period, despite a slight 4% dip in gold production to 1.42 million ounces.

Newmont Corporation (NYSE:NEM) produces and explores gold properties. It also explores for copper, silver, zinc, lead, and other metals.

While we acknowledge the potential of NEM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.