Credit Suisse expects gold to continue its upward trajectory and average US$2100/oz in 2021. The main supportive factor is very accommodative monetary policy along with fiscal expansion, particularly in the US.
The broker suggests investors focus on US real rates to determine the trajectory of the gold price as this has the strongest historical correlation.
St Barbara’s strategy briefing brought some clarity to production and growth expectations, Credit Suisse notes. M&A appears off the agenda, with management intent on maximising performance and returns from existing assets.
Credit Suisse retains an Outperform rating and reduces the target to $3.30 from $4.40.
Sector: Materials.
Target price is $3.30.Current Price is $2.45. Difference: $0.85 – (brackets indicate current price is over target). If SBM meets the Credit Suisse target it will return approximately 26% (excluding dividends, fees and charges – negative figures indicate an expected loss).
