RE: Target price from 6 to 9, potential $208 Oct 2025 17:35
From Interactive Investor.
"Amid expectations that gold and silver prices will stay higher for longer, Berenberg said it was Buy-rated on Endeavour Mining EDV+2.66%, Fresnillo FRES +2.00%, and the AIM-listed Pan African Resources PAF +1.87%"
"The report was released on the day that the price of gold traded above $4,000 for the first time, having risen by 52% this year in its strongest performance since 1979".
"The advance by the non-yielding asset has been fuelled by investor confidence in the US Federal Reserve’s rate-cutting cycle, a weaker dollar and uncertainty caused by the US government shutdown.
UBS now expects bullion to reach $4,200 an ounce over the coming months. It added: “While volatility could increase in the near term given the scale and speed of this year’s rally, we see both fundamental and momentum-based reasons for gold to rise further.”
Berneberg’s view is that gold prices will be flat to higher in 2026 and that this should drive major mark-to-market upside.
It added: “Gold is a great place to be, but equities need more than just mark-to-market upside to re-rate more. While we are bullish on the gold price, we think that stocks need to have other catalysts other than just a stronger gold price to re-rate.”
The bank’s preference is Endeavour, which it says has lagged Fresnillo on a relative basis but offers clear volume growth through organic and new production. It also notes low costs and major free cash flow generation and shareholder return upside.
Berenberg believes Mexico’s Fresnillo is moving towards its final leg of the current cycle upside but that it retains a Buy stance for the next upgrade cycle and special dividend in early 2026.
The bank’s price target on Fresnillo is 2,600p compared with today’s level of 2,320p, while Endeavour is backed to move from 3,222p to 4,300p".
It's sometimes said that "A rising tide lifts all ships".
GLASH