The news: Shares in Pantoro Gold rallied in morning trade after UBS has upgraded a buy view on the company, raising the 12-month target price to $7.50.
Shares have risen 8.65% to $3.70 at 1:37pm AEDT.
The context: UBS analyst AI Harvey has recently added Pantoro Gold to his list of buy-rated ASX gold stocks, which puts the stock alongside Westgold Resources, Ora Banda Mining, Catalyst Metals and Minerals 260.
Harvey named Pantoro Gold as his top pick, citing strong production growth and elevated gold prices as supporting a favourable outlook for higher earnings and cashflow. He added he remains positive on gold prices despite uncertainty relating to the Middle East conflict and ongoing trade tensions.
He said gold is likely to continue benefiting from a shift away from US assets, with rising interest from both institutional and retail investors. Strong demand has so far offset profit taking, and gold may continue to benefit from the current volatile environment as a ‘safe-haven’ alternative during periods of currency uncertainty.
The source: UBS analyst note