In a report released today, Daniel Major from UBS upgraded Barrick Gold (GOLD – Research Report) to a Buy, with a price target of $22.00.
Daniel Major has given his Buy rating due to a combination of factors that present Barrick Gold as a compelling investment opportunity. The company has experienced significant underperformance and de-rating compared to its peers, which Major believes creates a value opportunity. With gold prices projected at $2,900 per ounce, Barrick Gold trades at a substantial discount relative to its historical averages and competitors, suggesting potential for appreciation.
Furthermore, Major views the company’s guidance for 2025 as conservative, with expectations for production to hit a low and costs to peak. He anticipates that a restart of operations in Mali could act as a catalyst for earnings upgrades. Additionally, Barrick’s projects in high-risk jurisdictions, such as Reko Diq, offer high potential returns despite their risks. The company’s strong track record in challenging environments and strategic financing structures further support the Buy rating, with an expected growth in gold equivalent ounces by 2030.
In another report released on February 24, RBC Capital also maintained a Buy rating on the stock with a $20.00 price target.