On Thursday, Morgan Stanley updated its assessment of Gold Fields (NYSE:GFI) Limited (GFIJ:SJ) (OTC: GFIOF), increasing the stock's price target from ZAR23,000 to ZAR25,000. The firm has maintained an Equalweight rating on the shares. The adjustment follows a recent review of commodity prices and reflects changes in gold price forecasts.
The revision of the price target is based on Morgan Stanley's latest commodity price projections, which indicate a modest rise in the near-term gold price forecast for the years 2024 to 2026, ranging from a 0.1% to 2.3% increase. More significantly, the firm anticipates a substantial 33% hike in the long-term gold price forecast, setting it at $1,900 per ounce in 2024 real terms, which will be applicable from 2030 onwards.
Morgan Stanley's analysts have also rolled forward their valuation models by six months, resulting in an altered earnings estimate for Gold Fields. The updated estimates show a variation in earnings, with a decrease of 1% for FY24, followed by increases of 3% and 5% for FY25 and FY26, respectively. This reevaluation has led to an 8.7% rise in the price target, now set at ZAR250 per share.
In addition to the price target adjustment, the firm's bear case valuation for Gold Fields has been lifted by 7%, reaching ZAR160 per share. Despite these changes, Morgan Stanley's stance on the stock remains unchanged at Equalweight, suggesting that the analysts believe the company's stock is fairly valued at the current level.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.