Are these ASX 200 gold miner shares buys?

Should you be buying these gold miners?

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If you're looking for exposure to the gold sector, then you may be looking at the shares listed below.

Following their recent quarterly updates, a leading broker has been running the rule over them to see if there's an investment opportunity.

Here's what it thinks about these ASX 200 gold miners:

Evolution Mining Ltd (ASX: EVN)

According to a note out of Goldman Sachs, its analysts have downgraded this gold miner's shares to a sell rating with a $3.90 price target. This compares to the latest Evolution share price of $4.07.

Goldman wasn't impressed with its quarterly update, noting that it fell short of expectations with production and its costs were higher.

The broker said: "We downgrade EVN to Sell, with the stock trading at a premium to other gold names across our coverage (1.1xNAV, 7.0xEBITDA) despite the underwhelming near-term outlook and a growth profile largely concentrated in two key projects."

Newcrest Mining Ltd (ASX: NCM)

Goldman Sachs is much more positive on Newcrest and has put a buy rating and $35.00 price target on its shares. This compares to the current Newcrest share price of $26.18. This follows a quarterly update that was in line with the broker's expectations.

Goldman said: "We continue to expect that updates on key projects over the remainder of 2021 will de-risk the company's value-accretive project pipeline, and retain our Buy rating with NCM trading at 0.74xNAV."

Northern Star Resources Ltd (ASX: NST)

The broker notes that Northern Star outperformed its expectations with both its production and costs in the June quarter. This led to the gold miner comfortably achieving its full year guidance. In light of this, its growth options, and attractive valuation, the broker thinks its shares are in the buy zone. Goldman has a buy rating and $13.10 price target on its shares. This compares to the latest Northern Star share price of $10.76.

It explained: "Growth capex was ~A$500mn higher in total over the next three years vs. our prior estimates, but is expected to deliver a production profile broadly in line with our prior forecasts, after accounting for the divestment of Kundana included in guidance. We retain our Buy rating, with NST trading at 0.82xNAV despite offering high-returning organic growth."

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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