UBS Lifts Gold Price Target to US$3,900, with a Preference for These Mid cap Miners

SEATTLE (Scrap Monster): UBS has upgraded its gold price forecasts and lifted price targets across ASX gold miners by up to 27%, now anticipating a peak gold price of US$3,900/oz by mid-2026 (which translates to A$6,000/oz for Australian investors)

The investment bank expects earnings per share upgrades of 15-35% for the sector in FY26-27, driven by what it describes as an "extended free cash flow harvest phase" as higher gold prices flow through to company financials.

Mid-cap growth names in focus

Despite the sector-wide upgrade, UBS is becoming more selective, favouring mid-cap growth stocks over larger producers that have already seen significant share price gains. The bank's preferred picks among mid-caps include:

Genesis Minerals 

Perseus Mining

Vault Minerals

"At current equity levels, we see more opportunity in our mid-cap, growth names," UBS analysts wrote, noting that value has increasingly concentrated in these smaller operators as larger companies become more expensive.

The bank downgraded SSR Mining to Neutral and Regis Resources to Sell due to recent share price gains. Evolution Mining remained Sell-rated due to its recent run and relative valuations.

 Courtesy: www.marketindex.com