Motleyfoll today3 Jun 2020 23:11
Re-rating opportunity
Another stock that got upgraded today by UBS is gold miner Newcrest Mining Limited (ASX: NCM).
Many ASX gold producers like Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) have been outperforming with the gold price, but Newcrest is lagging behind.
UBS thinks this isn’t justified and is urging investors to rotate into Newcrest, which it upgraded to “buy” from “neutral”. This is the first time the broker has rated Newcrest a buy since August 2012!
“We have changed our thesis on Newcrest based on our in-depth work on Red Chris and Havieron,” said the broker.