Equinox Gold stock rating upgraded by RBC Capital on strong FCF outlook

Published 10/09/2025, 09:08
Equinox Gold stock rating upgraded by RBC Capital on strong FCF outlook

Investing.com - RBC Capital upgraded Equinox Gold (NYSE:EQX) from Sector Perform to Outperform and raised its price target to C$17.00 from C$11.00. The upgrade comes as InvestingPro data shows the stock has delivered impressive returns, with a 98% gain year-to-date and nearly 59% over the past six months.

The upgrade reflects RBC Capital’s forecast of approximately $3.0 billion in free cash flow through year-end 2027, even as the company’s cornerstone mines at Greenstone and Valentine continue their ramp-up phase.

RBC Capital noted that this strong cash flow generation should be sufficient to eliminate Equinox’s debt at current spot prices by year-end 2026, without requiring potential asset sales.

The increased price target incorporates RBC Capital’s 15% upward revision to its gold price forecast through 2030, with an average price of approximately $3,550 per ounce.

According to RBC Capital, Equinox Gold currently trades at a discount to peers on net asset value and especially free cash flow metrics, offering "strong re-rating potential into 2026 with limited downside."

In other recent news, Equinox Gold Corp reported its Q2 2025 earnings, meeting expectations for earnings per share (EPS) and significantly exceeding revenue forecasts. The company achieved a revenue of $478.6 million, surpassing the anticipated $401.29 million, which highlights its operational improvements and strategic initiatives. Equinox Gold’s EPS was reported at $0.11, aligning with analyst forecasts. These results have been a focal point for investors, reflecting a positive sentiment towards the company’s recent performance. Additionally, no major mergers or acquisitions were reported during this period. Analyst firms have not indicated any recent upgrades or downgrades for Equinox Gold. The company’s recent developments are likely to be closely watched by investors seeking insights into its future trajectory.

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