EGO - Eldorado Gold: Better Entries Ahead Of Strong Upside Potential

2024-02-12 19:03:13 ET

Summary

• A hold rating is assigned to Eldorado Gold due to the bright outlook for safe-haven gold and the company's robust production and elevated margins, but shares are on track to move lower.
• Gold prices are expected to rise in the next few months, reaching a forecast value of $2,112.48/oz, driven by strong demand and supply deficit.
• Eldorado Gold Corporation offers growth opportunities as its stock price is positively correlated with gold prices and the company has robust gold production and profitability.

Hold rating for Eldorado Gold Corporation

This analysis assigns a Hold rating to Eldorado Gold Corporation ( EGO ) shares, as over time the stock should offer the entry point seen as associated with greater upside potential amid the expected robust outlook for safe-haven gold and EGO's robust production and elevated margins.

The Outlook for Gold Prices

The troy ounce of gold bullion was trading at $2,022 at the time of writing, but Trading Economics analysts expect the price to tend to rise in the next few months, reaching the forecast value of $2,112.48/oz....

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