Canaccord Genuity initiates Gold Fields stock with Buy rating on growth outlook

Published 28/07/2025, 09:52
Canaccord Genuity initiates Gold Fields stock with Buy rating on growth outlook

Investing.com - Canaccord Genuity initiated coverage on Gold Fields (NYSE:GFI) with a Buy rating and a price target of $33.30 on Monday. The stock, which has delivered an impressive 90% return year-to-date, currently trades near $24.70, with InvestingPro data showing it’s slightly undervalued based on its Fair Value analysis.

The firm cited strong near-term growth prospects for the South Africa-headquartered gold producer, which operates 10 mines globally and ranks among the world’s top 10 gold producers.

Growth catalysts through 2026 include expansion at the Salares Norte and Gruyere mines, while the Windfall project and organic growth at foundational assets like St Ives, South Deep, and Tarkwa are expected to drive performance through 2028.

Canaccord Genuity forecasts significant deleveraging through 2027, potentially providing Gold Fields with additional resources for merger and acquisition activities.

The firm expects these growth factors to drive not only production and profit increases but also a potential re-rating of Gold Fields shares, supported by stronger shareholder returns.

In other recent news, Gold Road Resources has agreed to a $2.4 billion takeover by Gold Fields, a South African company. This agreement follows the rejection of an earlier $2.1 billion proposal in March, which Gold Road deemed insufficient. The new offer values Gold Road’s equity at around 3.7 billion Australian dollars, equivalent to $2.4 billion, and places the enterprise value at A$2.6 billion. This decision comes at a time when gold prices have reached record highs, exceeding $3,000 per troy ounce, driven by economic uncertainty and increased demand for gold as a safe haven. These developments mark significant changes for both companies involved.

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