UBS Starts Kinross Gold (KGC) at Buy

UBS analyst Daniel Major initiates coverage on Kinross Gold (NYSE: KGC) with a Buy rating and a price target of $20.00.

The analyst comments: "We initiate on Kinross (KGC) with a Buy rating because we remain constructive on gold, forecasting prices to remain elevated at $3,500/oz in 2026; KGC offers attractive value vs Senior gold peers and we believe accelerating cash returns will drive further re-rating. KGC has outperformed large cap peers AEM, NEM & ABX over the last 2-3yrs resulting in a multiple re-rating off a lower base: we believe this momentum will continue with (1) KGC reduced risk profile (Russia exit & NA growth); (2) improving operating performance (hit guidance last 2yrs); (3) better cost control vs peers; (4) debt reduction; (5) increasing cash returns. We believe KGC is well positioned to achieve 2025 guidance, while converting attractive 2025 FCF yield of ~10% (AEM/NEM/ABX ~5-7 %) to higher cash returns will see KGC trade closer to AEM/NEM @ 6-8x EV/EBITDA (vs KGC <5x). In our view the combination of positive earnings momentum (gold price upside/buybacks) and re-rating towards peer multiples creates attractive risk vs reward."

For an analyst ratings summary and ratings history on Kinross Gold click here. For more ratings news on Kinross Gold click here.

Shares of Kinross Gold closed at $16.21 yesterday.

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