Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF) offers investors a “very attractive” valuation amid record-breaking gold prices, that’s the view of Berenberg.
Analysts at the European bank have run the rule over several London-listed gold stocks, as part of a ‘sensitivity analysis’ in the sector as gold and silver prices have soared - due to continued geopolitical volatility, concerns about global growth rates, and worries over the impact of international trade tariffs.
Gold’s so-called safe haven value against the sharp recent sell-off in the tech sector was another reason cited as being a factor in gold prices running up above $2,900 per ounce (and silver going to $32 an ounce).
Berenberg rates Endeavour as a ‘buy’ and the bank has a 2,300p price target for the gold mining stock, compared to a market price of around 1,765p.
“After a challenging 2024, Endeavour Mining is firmly back on the right operational track, we think, and screens cheap on our base case estimates,” Berenberg analyst Richard Hatch said in a note.
Hatch added: “marking to market, Endeavour offers an 11% uplift versus consensus EBITDA for 2025 and a 25% uplift versus 2026 EBITDA.”
“This is meaningful upside for a FTSE 100 business and think that even after a strong start to 2025, the shares are very attractively valued.”