Anglogold Ashanti PLC (AU – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst yesterday. Analyst Raj Ray from BMO Capital maintained a Buy rating on the stock and has a $40.00 price target.
Raj Ray has given his Buy rating due to a combination of factors including the promising developments at AngloGold Ashanti’s key assets, Obuasi and Sukari. The recent visit to Obuasi has bolstered confidence in the infrastructure upgrades, which are expected to lead to higher production levels in the long term. Although the current production guidance is conservative, the potential for reaching higher outputs provides a positive outlook.
Additionally, Sukari is seen as a stable asset with opportunities for optimization that could enhance its performance further. The company’s strong free cash flow outlook, particularly for 2025, and its ability to manage costs effectively through asset optimization programs contribute to the positive rating. Furthermore, AngloGold’s stock is trading at a slight discount compared to its peers, making it an attractive investment opportunity.
Ray covers the Basic Materials sector, focusing on stocks such as Galiano Gold, Gold Fields, and Anglogold Ashanti PLC. According to TipRanks, Ray has an average return of 20.9% and a 69.72% success rate on recommended stocks.
In another report released on March 13, J.P. Morgan also maintained a Buy rating on the stock with a $33.00 price target.