Credit Suisse likes Evolution Mining for its peer low cost, strong free cash flow generation and positive production growth outlook.
From a valuation standpoint, Evolution Mining offers less value upside than both peers Newcrest Mining ((NCM)) and Northern Star Resources ((NST)) on spot gold price value scenario.
When it comes to quality, risk, value and growth, Credit Suisse maintains Evolution Mining as its preferred large-cap gold exposure although acknowledge both Northern Star and Newcrest Mining offer greater relative value.
The Outperform rating remains intact with the target dropping to $4.60 from $5.10.
Target price is $4.60.Current Price is $4.41. Difference: $0.19 – (brackets indicate current price is over target). If EVN meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).