Credit Suisse increases gold price forecasts for 2020-22, again. Fundamentals underpinning the gold sector include low and negative yields, a weakening US dollar and expectations that significant fiscal stimulus from various governments will ultimately be highly inflationary.
The broker prefers the large gold stocks such as Northern Star and believes it offers the best value. Rating is upgraded to Outperform from Neutral and the target is raised to $14.70 from $13.00.
Target price is $14.70.Current Price is $13.01. Difference: $1.69 – (brackets indicate current price is over target). If NST meets the Credit Suisse target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).