While the broader gold sector faces significant headwinds, one prominent financial institution is making a decidedly contrarian call. Analysts at Scotiabank have dramatically increased their valuation for Newmont Mining, the world’s largest gold producer, signaling strong conviction in the company’s fundamentals despite recent market volatility.
A Stark Contrast to Market Sentiment
In a research note dated January 26, 2026, Scotiabank strategist Tanya Jakusconek reaffirmed a “Sector Outperform” rating on Newmont’s equity. The bank’s most significant move was a substantial upward revision of its price target, lifting it from $114.00 to $152.00 per share.
This bullish adjustment is rooted in heightened expectations for the company’s operational performance. Scotiabank has raised its earnings per share (EPS) forecast for the 2025 fiscal year to $6.41. This optimistic stance presents a direct challenge to the prevailing negative sentiment, suggesting institutional observers view the stock’s recent decline as a temporary deviation from its intrinsic value rather than a reflection of underlying weakness.
The “Warsh Shock” and Its Impact
The immediate pressure on Newmont’s share price is largely attributed to a macroeconomic event dubbed the “Warsh Shock.” The nomination of Kevin Warsh to lead the U.S. Federal Reserve triggered a sharp sell-off in gold and silver markets last Friday and Monday.
Market participants interpret this potential appointment as a clear indicator of a more aggressive, hawkish monetary policy stance and a stronger U.S. dollar. Such expectations typically drive capital away from non-yielding assets like gold. Consequently, Newmont shares opened weaker on Monday, trading in the range of $111.00 to $112.00 as investors digested the new policy landscape.
Should investors sell immediately? Or is it worth buying Newmont Mining?
Assessing the Valuation Case
Despite the challenging macro environment, Newmont’s financial metrics point to solid underlying profitability. The company currently reports a trailing earnings per share of approximately $6.44, a figure that stands well above older consensus estimates near $3.45.
Key financial data as of the intraday session on February 2, 2026, includes:
* Current Share Price: ~$111.66
* Scotiabank Price Target: $152.00
* P/E Ratio: ~17.4
* Market Capitalization: ~$136.8 Billion
Trading at a price-to-earnings (P/E) multiple of roughly 17.4, value-oriented investors may find the current valuation level, combined with Newmont’s industry-leading position, an attractive proposition.
The coming weeks will test whether Scotiabank’s ambitious $152 target proves prescient once the initial volatility surrounding the Fed nomination subsides. The key factor will be the market’s speed in fully pricing in the potential shift in monetary policy direction.
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