Could ASX 200 gold stock De Grey Mining really have 35% upside?

De Grey Mining shares are down on Friday but broker RBC can see the light.

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a man wearing a gold shirt smiles widely as he is engulfed in a shower of gold confetti falling from the sky. representing a new gold discovery by ASX mining share OzAurum Resources

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De Grey Mining Limited (ASX: DEG) shares are in the red today, down 1.70% to $1.33.

But broker RBC thinks the ASX 200 gold stock can go a lot higher.

RBC has begun coverage on De Grey Mining with an outperform rating (courtesy The Australian).

It has placed a 12-month share price target of $1.80 on the miner, a potential upside of 35% for investors who buy today.

As we recently reported, Bell Potter also has high hopes for De Grey Mining shares.

It has a speculative buy rating on the gold developer with an improved price target of $1.93.

De Grey Mining shares already up 43% over 12 months

Like all ASX 200 gold stocks, De Grey has been rising over the past 12 months, partly due to the rising value of gold and increased investor interest in safe-haven assets.

De Grey Mining shares are up 43% over the past 12 months.

De Grey has outperformed fellow ASX 200 gold stocks Northern Star Resources Ltd (ASX: NST) and Evolution Mining Ltd (ASX: EVN), both up 40%, and Newcrest Mining Ltd (ASX: NCM), up 37%.

The gold price has been climbing since late 2022. It peaked in May at around US$2,045 per ounce.

This was very close to the all-time record of $2,074.88 set in August 2020 during the first year of COVID.

Today it's at US$1,934.93, up 0.06% at the time of writing.

Due to high inflation and interest rates, it's still possible that the United States and Australia may go into recession. This has spurred more interest in gold.

What's the latest news with this ASX 200 gold stock?

De Grey Mining released its June quarter report last week.

The company reported increased mineral resource estimates at several projects.

Among them was the Mallina Gold Project, with its estimate increased to 11.7 Moz.

De Grey Mining shares fell 1.46% on the day of the announcement.

Motley Fool contributor Bronwyn Allen 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 Scott Phillips.

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