The Evolution Mining Ltd (ASX: EVN) share price has been on an absolute tear in recent weeks. Most ASX 200 gold miners have been doing well. But Evolution shares have really shone out among the pack. Since 21 October, the Evolution share price has gained an impressive 33%.
That's far better than most other ASX 200 gold miners. Take the largest gold share on the ASX 200 — Newcrest Mining Ltd (ASX: NCM). Over that same period, Newcrest shares are 'only' up around 14%.
The catalyst for this move appears to be a recovering gold price, as well as potentially abating fears that interest rates still have a long way to climb.
But could Evolution Mining shares still have another 30% upside left in the tank? That's what one ASX broker reckons.
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ASX broker gives Evolution Mining shares a 30% upside
According to reporting in the Australian Financial Review (AFR) today, ASX broker Morgan Stanley has just re-rated Evolution Mining shares to overweight. That came with a 12-month share price target of $3.10.
Since the miner is today trading at $2.42 at the time of writing, up a healthy 3% for the day so far, this share price target would equate to a potential upside of more than 28% if it came to pass.
No doubt investors will be pleased with that assessment.
My Fool colleague Bernd looked into the gold price last month and where it might be heading from here.
He cited a report from BMO Capital Markets that predicted the US Federal Reserve will not raise interest rates as aggressively as what the markets are predicting. Because of this, BMO Capital is anticipating that gold prices will hold up around the US$1,680 mark until mid-next year.
This could be why a broker like Morgan Stanley is bullish on a gold miner like Evolution. But we'll just have to wait and see what happens.
At the current Evolution Mining share price, this ASX 200 gold miner has a market capitalisation of $4.43 billion, with a dividend yield of 2.48%.
