Morgan Stanley analyst Carlos De Alba has maintained an Overweight rating on Novagold Resources while adjusting the stock's price target downward. The new target is set at $13.6, reduced from the previous estimate of $13.8. This adjustment indicates a modest recalibration of the company's valuation potential by the financial institution.

The rating retention suggests that the firm continues to view the stock favorably relative to the broader market despite the lowered price objective. Novagold Resources is listed on the AMEX under the ticker symbol NG.

Novagold Resources reported a fiscal 2026 second-quarter net loss of $25.5 million, or $0.06 per share, marking a decrease of $28.8 million from the prior year. The loss narrowed compared to the same period last year, primarily due to a $39.6 million non-cash charge recognized in the prior year related to warrants issued under a backstop agreement. The company advanced the Donlin Gold Project, focusing on completing the bankable feasibility study by 2027, with significant progress in integrating major work packages and technical streams.

Financial Performance

The company's earnings per share (EPS) for the quarter was $0.06, reflecting the net loss reported. The table below details the comparison between the reported results and analyst estimates.

Novagold's cash and term deposits decreased by $22.3 million to $370.2 million, reflecting funding for Donlin Gold and corporate G&A costs. The company remains well-funded for upcoming commitments, including the completion of the bankable feasibility study in 2027 and the prepayment of the Barrick Promissory Note.

Operational Updates

Permitting for Donlin Gold is ongoing, with key regulatory processes affirmed and anticipation of a decision on the Clean Water Act section 401 certification within a year. Management highlighted strong collaboration with local stakeholders and continued support from shareholders, emphasizing the project's long-term value potential and strategic importance. The company's share of Donlin Gold expenses in the second quarter of 2026 was $10.4 million higher than the comparative prior year period due to ongoing activities by Fluor, WSP, Worley, and Hatch to advance the study.