Shares in Fresnillo PLC (LSE:FRES) rose 2.4% on Friday after Citi raised its price target on the precious metals miner to £13, citing strong earnings and free cash flow in the first quarter alongside a constructive outlook for gold and silver prices.
In a sector-wide update, the American bank said the Mexico-focused precious metals group stood out among European peers following a solid start to the year.
The stock remains rated 'buy', with analysts pointing to continued strength in gold and silver as a key driver. Citi’s house view sees gold potentially reaching $3,500 an ounce, supporting momentum for miners with exposure to precious metals.
While most European mining groups have reiterated full-year guidance despite weaker production in the first quarter, Citi’s earnings forecasts remain largely unchanged at the top level.
Upgrades have come through selectively, with positive revisions also made to Boliden and Norsk Hydro.
Boliden’s earnings profile has improved following its latest asset acquisition, though near-term delivery is expected to be held back by lower mining grades. Norsk Hydro’s weaker extrusion outlook is being offset by the delayed effect of higher aluminium prices.
In early afternoon trading, the stock was up 25p at 1,055p.