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(Sharecast News) - Analysts at RBC Capital Markets cut its target price on gold miner Endeavour Mining from 6,000p to 5,100p on Thursday, after lowering its gold price assumptions for 2026 and 2027.
RBC updated its model to reflect its latest commodity forecasts, trimming its 2026 gold estimate to $4,760 an ounce, down 17% on its prior view, and its 2027 forecast to $5,250 an ounce, down 19%. The longterm gold price assumption was left unchanged at $4,000 an ounce.
The Canadian bank, which kept its 'outperform' rating on the stock, said rising yields, driven by geopolitical uncertainty around Iran and firmer inflation expectations, were likely to cap nearterm upside, though it still expects prices to strengthen into 2027.
RBC's revised assumptions prompted cuts of 17% to Endeavour's forecast FY25-27 underlying earnings, 26% to earnings per share, 27% to free cash flow and 6% to net asset value per share.
However, RBC said it continues to expect the shares to rerate, supported by a sectorleading dividend yield and strong cost positioning in an inflationary environment.
Reporting by Iain Gilbert at Sharecast.com
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