Jim Cramer Likes Agnico Eagle Mines, Warns Gold Headed Lower

Jim Cramer told a caller Wednesday he likes Agnico Eagle Mines (NYSE:AEM) as a company. He also expects gold prices to fall from here.

The comment came during the "ask Cramer" segment on CNBC. A viewer asked whether the stock is a buy, sell, or hold. Cramer said: "Okay… I say, as much as I like Agnico and you know I do, I think gold is going lower." He did not give a price target or a timeline.

Agnico Eagle is one of the largest senior gold producers by market cap. Its operations span Canada, Finland, and Mexico. The stock has tracked gold's rally this year. Spot gold crossed $4,300 in late February before pulling back. The metal traded near $4,150 Wednesday afternoon.

Cramer's view puts him against the consensus among sell-side analysts. Of 13 analysts tracked by Visible Alpha, 10 rate the stock a Buy, two a Hold, and one a Sell. The median price target implies roughly 15% upside from Wednesday's close.

The company also faces a near-term operational headwind. A wall slip at the Barnat pit, disclosed earlier this month, cut annual gold output by 150,000 ounces. That Barnat Pit Wall Slip Cuts Gold Output 150,000 oz a Year is one of several risks for the miner.

Cramer's broader commentary Wednesday focused on market rotation out of growth and into value. He told viewers to take profits in stocks that have run too far and look for names with real earnings. Agnico Eagle fits that description on earnings, he said. The gold price outlook tempers his enthusiasm.

Agnico Eagle's Alpha Score sits at 60 out of 100, a Moderate rating in the Basic Materials sector. The full breakdown is on the AEM stock page.

The U.S. jobs report Friday will provide the next data point for rate expectations and gold. A hot number could push Treasury yields higher and pressure non-yielding gold. A soft print would revive bets on a rate cut, supporting the metal.