Citi has downgraded its outlook for gold, anticipating “peak gold” in 2021 before the price unwinds in 2022 based on vaccine developments and a return to global growth.
Gold prices are expected to make a push above US$1975/oz in the next 6-9 months. The broker observes the ASX gold index is down -20% over the past three months on expectations of lower gold prices.
Citi revises forecasts for Perseus Mining down post 2021 and reduces the target to $1.55 from $1.60. Based on valuation, the rating is upgraded to Buy/High Risk from Neutral/High Risk.
Sector: Materials.
Target price is $1.55.Current Price is $1.22. Difference: $0.33 – (brackets indicate current price is over target). If PRU meets the Citi target it will return approximately 21% (excluding dividends, fees and charges – negative figures indicate an expected loss).
