DRDGOLD stock price target raised to $36.25 from $30.50 at H.C. Wainwright

Investing.com - H.C. Wainwright raised its price target on DRDGOLD Ltd. (NYSE:DRD) to $36.25 from $30.50 on Friday, while maintaining a Buy rating on the stock. The company, with a market capitalization of $2.7 billion, has delivered an impressive 273% return year-to-date.

The gold mining company reported total gold production of 38,291 ounces for the quarter, representing a 2% increase quarter-over-quarter. Gold sales reached 37,231 ounces, a slight 1% increase from the previous quarter.

The production increase was attributed to a 5% rise in gold grades and improved recovery rates, which offset a 3% decline in throughput compared to the previous quarter. The company also benefited from higher gold prices, with an average of $3,429 per ounce, up 5% quarter-over-quarter.

These factors drove DRDGOLD’s adjusted EBITDA to approximately R1,092.9 million (about $62.0 million). Management did not update the company’s gold production guidance of 140,000-150,000 ounces for fiscal year 2026.

H.C. Wainwright expressed confidence that DRDGOLD remains on track to meet expectations following its quarterly performance while continuing to benefit from strong metal prices.

In other recent news, DRDGOLD Limited has reported a significant increase in its annual financial performance. The company announced a 26% rise in revenue, reaching R7,878.2 million, compared to R6,239.7 million the previous year. Operating profit also saw a substantial increase of 69%, reaching R3,523.6 million. Earnings per share rose by 69% to 260.1 South African cents, with headline earnings per share matching this growth. Furthermore, DRDGOLD declared a final cash dividend, highlighting its strong financial position.

In response to these strong earnings, H.C. Wainwright reiterated its Buy rating for DRDGOLD, maintaining a previous price target of $18.75. However, the firm later raised its price target to $30.50, citing increased investor interest in the company’s Vision 2028 Initiative and the strength in gold prices. These developments reflect a positive outlook for DRDGOLD, according to H.C. Wainwright.

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