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Here’s a shocker: yet another investment bank has hiked its targets for gold bullion and gold stocks.

OK, it’s not shocking. But it’s good news for precious metals investors. J.P. Morgan lifted its weighted average gold price assumption to US$1,192.50 an ounce, up US$52.50 from its prior target.

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“Recent gold price strength has been driven by concern about European sovereign debt, and we expect gold prices to remain strong until this and other debt issues are resolved,” analyst John Bridges wrote in a note to clients.

Mr. Bridges lifted his price targets across for gold stocks across the board, in some cases by large amounts. His biggest changes were for Agnico-Eagle Mines Ltd. (up 25% to US$64.00 a share), Goldcorp Inc. (up 19% to US$51.00 a share), and Barrick Gold Corp. (up 16% to US$57.00 a share).

Mr. Bridges sees the most upside potential in Kinross Gold Corp., which is trading at a whopping 74% discount to his target of US$30.00 a share. He wrote that Kinross disappointed the market with delays at its Paracatu project in Brazil, but that it continues to look undervalued.

Peter Koven