News
Citi sees more than 30% upside ahead for gold miner as precious metal prices rise
Published
8 months agoon
By
admin
Citi sees more upside ahead for Gold Fields on top of its already impressive year-to-date rally. The bank initiated the South Africa-headquartered gold miner at a buy rating. Analyst Ephrem Ravi’s $50 price target is about 33% higher than where shares of Gold Fields closed on Monday. The stock has soared more than 184% this year as gold prices surged to record levels above $4,000 per ounce. However, Ravi thinks the miner can build on those strong gains. GFI YTD mountain GFI YTD chart Ravi applauded Gold Fields for being the world’s eighth largest gold producer and having a diversified asset base. “It accounts for only 2% of global gold production and is well placed to benefit from the scarcity of large listed gold miners in rising gold price environment,” he wrote. “With production relatively balanced across four continents (Australia, Africa and Americas), the risk from adverse jurisdictional/geopolitical events is diversified.” The analyst also noted that incremental gold production is likely to be at lower costs, as new mines cost less while also driving output up. He reiterated that Citi remains constructive on gold in the near term. Even if gold prices sustain at their current levels, Gold Fields would be in a net cash position by the end of next year, giving it even more options for growth, Ravi added. Despite Gold Fields’ impressive year-to-date rally, Ravi believes that the stock could still rally from here. “We believe GFI should trade at higher multiples due to: (i) well capitalized assets now which means unlike the previous gold bull cycles, benefits of higher gold prices should lead to higher FCF generation rather than increase in capex, (ii) GFI is trading at discount to the global peers despite production growth over the next five years,” he wrote. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
This industrial giant is emerging as a big AI play, says Wells Fargo
Novo Nordisk’s strategy tested as investors push back on board revamp
Alibaba plans AI subscriptions, stablecoin-like payments with JPMorgan
UK borrowing costs spike on report government to scrap plans to raise income tax
Trump’s threatened the BBC with a $1B lawsuit: Here’s what’s going on
UBS’s picks for global returns next year
Wells Fargo sees Caterpillar continuing to roar higher, emerging as an artificial intelligence play. The bank initiated shares of...
Flags with the logos of Danish drugmaker Novo Nordisk, maker of the blockbuster diabetes and weight-loss treatments Ozempic...
Key Points Alibaba plans to use “tokenization” of payments for cross-border transactions in its business-to-business arm. Kuo Zhang, president...
Rachel Reeves, U.K. chancellor of the exchequer, delivers a speech in London, UK, on Tuesday, Nov. 4, 2025. Bloomberg...
US President Donald Trump speaks to reporters as he arrives at Palm Beach International Airport on Oct. 31,...
Investors looking for global diversification opportunities should look to a specific subset of stocks in Europe, according to UBS...
Eakarat Buanoi | Istock | Getty Images LISBON, Portugal — Top tech executives told CNBC they’re concerned about...
Tan Su Shan, deputy chief executive officer and managing director of institutional banking at DBS Group Holdings Ltd., speaks during...
CHENGDU, CHINA – OCTOBER 18: People walk past the Louis Vuitton store at Taikoo Li, a high-end shopping area that...
The United States said Thursday it will remove tariffs on some foods and other imports from Argentina, Ecuador, Guatemala and...
