UBS downgrades Newmont ahead of expected dividend cut

UBS analyst Cleve Rueckert downgraded Newmont to Neutral from Buy with a price target of $53, down from $59. The analyst sees a more balanced risk/reward skew for the shares. Gold prices have rallied, the Newcrest bid represents dilution risk, and there is limited upside catalysts on Newmont’s February 23 earnings report, the analyst tells investors in a research note. The firm forecasts a 15% dividend cut when earnings rare reported, saying additional information on Newcrest merger synergies and cash flow would help boost its confidence.