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Dundee Sees $2,000 Gold Ahead, Ups Targets on AUY, EGO, GG

GoldAlert Staff

October 3, 2012

The latest firm to raise its price targets on a host of gold stocks was Dundee Securities, which in a report published this morning discussed its bullish outlook for the sector.

Analysts at Dundee asserted that the outperformance of gold equities relative to the yellow metal since August “signals the possibility of a change in market sentiment toward gold companies.”

“Whether or not the increase is sustainable in the short-term is questionable,” the firm noted, “but over the course of the next twelve months we expect there is a strong case to be made that the price of gold will move through US$2,000/oz and that most of the equities in our coverage universe will take out their 52-week highs.”

Based on its positive forecast, Dundee increased its target prices on the following companies:

Alamos Gold (AGI.TSX): C$25.00 from C$23.00, Buy rating reiterated

Allied Nevada Gold (ANV.TSX, AMEX: ANV): C$45.00 from C$40.00, Buy rating reiterated

Aurizon Mines (ARZ.TSX, AMEX: AZK): C$5.80 from C$5.00, Neutral rating maintained

Eldorado Gold (ELD.TSX, NYSE: EGO): C$16.00 from C$15.00, Neutral rating maintained

Goldcorp (G.TSX, NYSE: GG): C$55.00 from C$48.00, Buy rating reiterated

Perseus Mining (PRU.TSX): C$4.40 from C$4.00, Buy rating reiterated

San Gold (SGR.TSX): C$2.20 from C$2.00, Buy rating reiterated

Yamana Gold (YRI.TSX, NYSE: AUY): C$22.00 from C$17.00, Neutral rating maintained