Lundin Gold Inc. (LUG:CA) (LUGDF)
STA Research has maintained its Speculative Buy rating on Lundin Gold and reaffirmed its 12-month target price of C$125.00, citing renewed optimism around the gold market. The firm notes that expectations for lower U.S. Federal Reserve interest rates, paired with persistent macroeconomic uncertainty, are creating a constructive backdrop for gold price appreciation.
Lower interest rates typically reduce the opportunity cost of holding non-yielding assets such as gold, while economic and geopolitical concerns often drive investors toward safe-haven commodities. STA Research believes Lundin Gold is well positioned to benefit from this environment due to its stable production profile, strong cost performance at the Fruta del Norte mine, and robust free cash flow outlook.
Overall, the maintained Speculative Buy rating reflects confidence in Lundin Gold’s leverage to rising gold prices and its potential for outsized upside should the precious metal continue to strengthen through 2026.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
