Gold prices edge higher on raised Fed rate cut hopes
Investing.com - TD Securities downgraded Lundin Gold Inc. (TSX:LUG) (OTC:FTMNF (OTC:LUGDF)) stock rating from Buy to Hold on Wednesday, while simultaneously raising its price target to C$73.00 from C$65.00.
The rating change was described as "purely a valuation, risk/reward call" by the Canadian investment bank, which maintained its positive view of the company’s fundamentals despite the downgrade.
TD Securities noted that Lundin Gold remains "a high-quality, well-managed company with industry-leading capital returns," according to its research note.
The firm explained that the near-term upside for Lundin Gold "has been largely priced into the shares at this point," suggesting limited potential for further appreciation at current levels.
The price target increase was attributed to TD Securities’ updated gold price forecast, though the firm indicated it sees "better value in other producers" within the gold mining sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.