BREAKING: Bell Potter has just upgraded three major ASX 200 gold stocks to ‘buy’ ratings, signaling a significant opportunity for investors. The upgrades come as the gold sector continues to heat up, with analysts believing the stocks are undervalued and ripe for growth.
In a report released earlier today, the firm highlighted that Australian gold stocks have been underperforming compared to their North American counterparts, a trend that is not typical. Bell Potter’s analysts stated, “The underperformance of Aussie gold equities has been getting our attention over the last couple of months,” emphasizing a disconnect that deviates from historical trading patterns.
UPDATE: The three ASX 200 gold stocks receiving upgrades are Capricorn Metals Ltd (ASX: CMM), Evolution Mining Ltd (ASX: EVN), and Regis Resources Ltd (ASX: RRL). Each has been elevated from ‘hold’ to ‘buy’ with considerably higher price targets. Capricorn Metals is now valued at $13.10 (up from $10.80), Evolution at $10.55 (up from $8.15), and Regis Resources at $6.30 (up from $4.90).
The report identifies potential catalysts for this shift, including the anticipated release of FY26 production and cost guidance, which may fall below market expectations. However, the analysts pointed out that similar challenges are also affecting key North American stocks, suggesting that the disconnect between ASX-listed producers and global names lacks fundamental justification.
Bell Potter further noted, “We have not identified any fundamental drivers unique to ASX-listed gold producers that would explain why this disconnect should be sustained.” This analysis could lead to a reversal as market conditions stabilize.
Investors are particularly keen on Capricorn Metals, regarded as a sector leader due to its low-cost operations and strong margin performance. The company is projected to ramp up production significantly, targeting an increase from approximately 120,000 ounces annually to around 300,000 ounces by mid-FY27, thanks to upcoming projects at Karlawinda and Mt Gibson.
The implications of these upgrades are crucial for both seasoned investors and those looking to enter the gold market. As the sector evolves, these stocks may provide substantial returns, especially given their current undervaluation relative to international competitors.
WHAT TO WATCH FOR: Investors should monitor upcoming FY26 production and cost guidance releases as they could provide further insights into the future performance of these gold stocks. The market is poised for potential shifts, and with Bell Potter’s recent analysis, it’s clear that significant opportunities lie ahead.
This urgent update not only reflects the latest developments in the gold sector but also highlights the growing confidence among analysts regarding ASX-listed gold stocks. As always, investors are encouraged to conduct their own research and consider market conditions when making investment decisions.
