Citi analysts highlight their preferred gold exposures in the Australian share market as US election uncertainty dominates. Buy-rated stocks Newcrest and Northern Star ((NST)) are most preferred. In the analysts own words, "for operational and financial quality as well as mid-range FCF/EPS sensitivity to gold price".
The analysts add Regis Resources ((RRL)) also screens well, as does OceanaGold ((OGC)), while smaller producers Medusa Mining ((MML)) and Beadell Resources ((BDR)) are highly leveraged to USD gold, they note, this due to higher all-in production costs.
Target price is $26.20.Current Price is $23.70. Difference: $2.50 – (brackets indicate current price is over target). If NCM meets the Citi target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).