In a recent report, the renowned investment bank Morgan Stanley advised investors to buy gold-linked stocks, noting that buying now is the most appropriate time to buy.
Tensions in the Middle East, caused by the conflict between Israel and Palestinian resistance movements, have led to a surge in gold as a safe-haven asset as investments in the precious metal have increased. But this rise has since eased, with spot gold prices trading at $1,946 in today’s session, up around 6% since the start of the year. Notably, gold-related equities have underperformed gold prices by around 20% over the past three months, wrote the investment bank’s analysts, led by Sandeep Beatty, in a November 2 note.
Morgan Stanley has described the opportunity to invest in certain gold-related stocks as a “golden opportunity”. These investment opportunities include companies such as UK mining company Endeavour (LON: EDV), Australian Evolution Mining (ASX: EVN), Regis Resources (ASX: RRL), and Zijin Group. – China’s “Zijin Mining (SS:601899)”. The US bank raised its rating on all shares of these companies to “overweight in the portfolio”.
The bank raised its price target for Endeavour to £1,950 ($2,393) from £1,852, suggesting a potential upside of around 15.3% from the November 7 close.
Meanwhile, Morgan Stanley has a price target of AUD 4.25 ($2.74) for Evolution Mining – giving it a potential upside of 14.6% from its November 7 close – and AUD 1.95 for Regis Resources, a rise of around 6%. Zijin has a price target of 16.5 yuan ($2.27), giving it an upside potential of 37.4%.
Morgan Stanley (NYSE: MS) also has an Overweight rating on Peruvian precious metals company Compania de Minas Buenaventura. It has set a price target of $10.30, giving it an upside of 20.6%.