HMY - Harmony Gold: Bright Outlook And Possible Lower Share Price
2024-02-20 21:46:38 ET
Summary
- Harmony Gold Mining Company has a positive outlook due to improving gold production and operating costs and a higher gold price ahead.
- The analysis suggests a "hold" rating until the Fed appears ready to cut interest rates. Meanwhile, uncertainty keeps sentiment neutral, while higher rates set the stage for lower stock price.
- Harmony Gold is benefiting from strong performance in its gold activities, leading to improved profitability and balance sheet deleveraging.
A Hold Rating for Harmony Gold
The previous article stated that Harmony Gold Mining Company Limited's ( HMY ) stock price was going to suffer significantly from the tightening of monetary policy. Indeed, HMY stock fell significantly from the previous Sell recommendation until late summer 2023, before the market began to factor in rate cut expectations. As Harmony Gold tends to amplify changes in the gold price, it was suggested to take some profits ahead of the expected strong bearish sentiment for gold while the share price was very high in the cycle.
Compared to the previous article, this analysis instead predicts a positive outlook for South African gold miner Harmony Gold shares as the company looks to improve gold production and operating costs amid an expected rise in the price of the yellow metal....
Harmony Gold: Bright Outlook And Possible Lower Share Price