Analyst Marcin Wojtal of Bank of America Securities reiterated a Buy rating on Novagold Resources New (NG – Research Report), with a price target of p1,270.00.
Marcin Wojtal has given his Buy rating due to a combination of factors related to Novagold Resources New’s growth prospects and regulatory environment. He sees a significant capital expenditure pipeline in both the UK and US, particularly in the electricity sector, as a key growth driver for the company. This is complemented by improved regulatory visibility, with allowed returns on equity projected to rise, supported by interest rate indexations. Furthermore, Wojtal perceives the company’s shares to be fairly valued, trading at a multiple in line with its historical average, despite the company exhibiting an acceleration in earnings per share growth. This presents an attractive entry point for investors ahead of the upcoming full-year results announcement.
Additionally, Wojtal anticipates favorable regulatory decisions in the New York rate cases, expecting a moderate uplift in allowed returns on equity. Looking ahead to the UK market, he notes that allowed returns are set to increase from calendar year 2024 onwards, following recent reviews by OFGEM that have been more favorable than initial determinations. Wojtal also addresses investor concerns regarding the funding of capital expenditures, suggesting that fears are overstated. He believes that the company’s debt-to-regulated asset base ratio will remain within management’s target range and that there is potential for further improvement in leverage metrics through asset disposals or hybrid bond issuances. These elements collectively support the Buy rating and suggest a positive outlook for Novagold Resources New’s financial performance.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Novagold Resources New (NG) Company Description:
NovaGold Resources, Inc. engages in the acquisition, exploration, and development of metal properties primarily located in Alaska and British Columbia. Its developments include Donlin Gold and Galore Creek projects. The company was founded by Gregory Shawn Johnson, John W. Chisholm, Macisaac G. Angus, Rick van Nieuwenhuyse, and Gerald James McConnell on December 5, 1984 and is headquartered Vancouver, Canada.
