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.
This drives a ratings upgrade to Northern Star, to Buy from Neutral, and the target price is lowered to $13.90 from $15.90.
Sector: Materials.
Target price is $13.90.Current Price is $12.19. Difference: $1.71 – (brackets indicate current price is over target). If NST meets the Citi target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
