Canaccord Genuity hikes target price on Fresnillo

(Sharecast News) - Analysts at Berenberg raised their target price on mining firm Fresnillo from 980p to 2,440p on Friday after running its second revised fourth quarter precious metals price deck through its model on the stock to see where its forecasts landed in the years ahead. Berenberg increased its 2026-2028 gold price by 14-15%, with its silver price deck up 19-20% in the same timeframe, meaning its 2025 underlying earnings estimate was up 31% to $2.3b, while its 2026 estimate was up 78% at $2.6b.

"With over US$1b in free cash now forecast to be generated in both 2025E and 2026E, on our numbers, we have increased our dividend payments to over US$600m pa, driven by a 100% increase to our DPS forecasts in both years," said the German bank.

"We have also increased our target price by 149% to 2440p (from 980p), but note that this also uses both NAV and EV/EBITDA multiples at a 20% premium to the rest of the sector. With 7% implied downside to our revised target price."

Berenberg also reiterated its 'hold' rating on the stock.







Reporting by Iain Gilbert at Sharecast.com