BMO downgrades AngloGold Ashanti stock rating on valuation

AngloGold Ashanti's shares fell 4.4% after BMO downgraded the stock to Market Perform, citing a premium valuation. The company missed Q2 2026 earnings and revenue estimates, though free cash flow and EBITDA improved. Broader market declines and a cooling gold price also pressured the stock, which hit a session low of $102.10.

AngloGold Ashanti (NYSE:AU) shares dropped 4.8% after BMO Capital downgraded the stock to Market Perform from Outperform, maintaining a $115 price target. The downgrade comes after strong performance over the past three years, with shares now trading at a premium to net asset value. BMO noted steady near-term operations and long-term growth from the Arthur project, but expects selective deployment of the $2.0 billion buyback program.

BMO Capital downgraded Anglogold Ashanti from Outperform to Market Perform, setting a $115 price target. The company's stock has declined 3.77% in 5 days and 6.81% year-to-date, despite a 22.02% increase since January 1st.

AngloGold Ashanti (AU) reported a significant year-on-year EBITDA increase to US$4.30 billion in H1 2026, driven by higher metal prices and cost efficiencies. The company maintained its full-year production guidance, suggesting its cost-efficiency program is offsetting operational setbacks. AU also proposed a US$2.0 billion share repurchase program, pending approval. Analysts project varying revenue and earnings forecasts for 2029, with some optimistic views and others cautioning about cost pres

AngloGold Ashanti ADR fell 4.9% to $106.82 in pre-market trading due to a sharp decline in gold prices, driven by hawkish remarks from Fed Chair Kevin Warsh. Rising rate hike expectations reduced gold's appeal, and the stock's recent surge left it vulnerable to profit-taking. Analysts' consensus price target is around $113, and broader market pressures also contributed to the decline.

Federal Reserve Chair Kevin Warsh's hawkish remarks on inflation caused a sharp decline in precious metals mining stocks. First Majestic Silver (AG) led the drop, falling 5.09%, while other miners like AngloGold Ashanti (AU) and Barrick Mining (B) also saw significant decreases. Warsh's comments pushed up interest-rate expectations, increasing the opportunity cost of holding non-yielding assets like gold and silver.