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Investing.com -- UBS upgraded Barrick Gold (TSX:ABX) Corp (NYSE:GOLD) to Buy from Neutral, raising its price target to $22 per share given the stock’s recent underperformance and a favourable long-term outlook for gold.

The firm noted that Barrick trades at a significant discount to peers, with 2025 estimated EV/EBITDA at around 5x, compared to historical averages.

UBS believes 2025 could mark a low point for production and peak unit costs, with potential upside if its suspended Mali operations restart.

UBS also highlighted Barrick’s medium-term copper growth potential, particularly through its high-risk but high-return Reko Diq project.

Despite elevated capital expenditures, the firm sees Barrick as the only major gold miner with material organic growth, estimating more than 30% growth in gold equivalent ounces by 2030.

The $22 price target is based on 5x forward EV/EBITDA at UBS’s gold price assumption of $2,900 per ounce.

This content was originally published on http://Investing.com


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