Top 5 Gold Stocks to Watch as Bullion hits Record Highs: UBS Weighs in

Investing.com -- Gold stocks have seen varying performance in recent months, with several companies positioning themselves for strong future returns amid high gold prices. According to recent UBS analysis, certain gold miners and royalty companies stand out as particularly promising investments. Here’s a breakdown of UBS’s top-ranked gold stocks and what makes them attractive.

UBS identifies Barrick as its preferred turnaround story in large-cap gold, with several positive catalysts on the horizon. The company has recently reversed an extended period of underperformance through strategic asset sales, including Hemlo (up to $1.1 billion) and Donlin ($1 billion), which have moved the business to a net cash position. Cash returns are increasing in Q2 2025, and the Fourmile project represents an exciting medium-term growth driver. UBS has assigned Barrick a price target of $35 per share with a Buy rating.

In a recent development, Barrick Gold announced the sale of its Hemlo gold mine to Carcetti Capital for up to $1.09 billion as part of its portfolio streamlining efforts. Additionally, both BMO Capital and RBC Capital raised their price targets on the company, citing signs of improvement in the Nevada Gold Mines district.

Barrick (Buy, PT $35/share): Preferred turnaround story with positive catalysts from asset sales, improving operations, and accelerating cash returns. Fourmile project offers exciting medium-term growth potential.

Endeavour (Buy, PT £36/share): Despite a difficult 2024, operational performance has improved with higher production and lower capital expenditures. Strong gold prices are driving robust free cash flow, rapid debt reduction, and cash returns in 2025/26. Well-positioned for 2025 guidance with stronger cash generation expected in the second half.

Franco-Nevada (Buy, PT $250/share): Offers lower-risk diversified gold exposure through its streaming/royalty model. The restart of Cobre Panama should drive approximately 30% zero-capex near-term volume growth, with restart expected in late 2026. Trading at 22x spot 2025 EV/EBITDA, in line with historical averages.

Newmont (Buy, PT $92/share): Following deal digestion and 2024 guidance downgrades, operational performance is improving. Returned $1.9 billion in cash during first half of 2025, including $1 billion in buybacks in Q2. With net debt below target, strong cash returns are expected to continue.

Kinross (Buy, PT $27/share): Forecast to move into net cash position in second half of 2025 with modest capital expenditure upside. Expected to generate over 20% of its market cap in free cash flow over three years. UBS suggests a clear distribution policy would enhance investment case.

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