Torex Gold Resources (OTC:) shares (TXG:CN) (OTC: TORXF) received an upgrade by National Bank Financial from Sector Perform to Outperform. Accompanying this rating change, the firm also increased the price target for the mining company’s shares to Cdn$37.75, up from the previous target of Cdn$31.25.
The upgrade was prompted by a revision of the gold price outlook by National Bank Financial. The firm now expects a materially higher long-term gold price of $2,200 per ounce, a significant increase from the previous estimate of $1,700 per ounce. This revised gold price forecast is in alignment with a positive view on the precious metals’ market conditions.
According to the analyst’s comments, the revised gold price deck has favorably impacted the valuation of Torex Gold’s Morelos Complex. The analyst expects that the company’s production outlook is promising, with the potential to sustain over 450,000 ounces per year through 2030 and possibly longer if the company successfully converts its resources into reserves.
The analyst’s optimistic outlook for Torex Gold Resources is reflected in the new price target and upgraded rating. This suggests a confidence in the company’s ability to capitalize on the current precious metals market and maintain a strong production rate in the coming years.
Investors may watch Torex Gold’s stock performance in the coming days to gauge market reaction to the upgraded rating and revised price target. The firm’s adjustment in the stock’s outlook is based on current market conditions and the company’s operational forecast.
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