With the gold price at sky-high levels, investors have unsurprisingly been piling into the gold sector in recent months.
If you want to join them but aren't sure which ASX 200 gold stocks to buy, then don't worry.
That's because Goldman Sachs has just picked out three gold miners that it thinks are buys. They are as follows:
De Grey Mining Limited (ASX: DEG)
Goldman Sachs has a buy rating and a $1.40 price target on this gold developer's shares. This implies a potential upside of 14% for investors over the next 12 months.
Evolution Mining Ltd (ASX: EVN)
The broker has a buy rating and a $4.20 price target on this ASX 200 gold stock. This suggests that its shares could rise almost 13% from current levels.
Gold Road Resources Ltd (ASX: GOR)
Finally, Goldman is a fan of this ASX 200 gold stock and has a buy rating and a $2.10 price target on its shares. This implies a potential upside of approximately 23% for investors between now and this time next year.
ASX 200 gold stock downgraded
One gold miner that was rated a buy until this morning is Regis Resources Ltd (ASX: RRL).
According to the note, the broker has downgraded the company's shares to a neutral rating with a $2.25 price target.
Goldman appears to believe that its shares are close to being fully valued and sees more value on offer elsewhere in the sector. It commented:
With RRL's low priced gold hedges now closed, we see more limited near-term catalysts for the stock, with double-digit FCF yields now more priced in on a P/NAV basis, and downgrade RRL to Neutral. Since we added RRL to our Buy list on 3 July 2023, RRL's share price has risen ~13% vs. the ASX 200's up ~3%, gold peers up ~8%, and US$/A$ gold prices up c. 7%/6% over the same period.
Elsewhere, Goldman has neutral ratings on two other ASX 200 gold stocks – Capricorn Metals Ltd (ASX: CMM) and Northern Star Resources Ltd (ASX: NST). It has price targets of $4.55 and $13.10, respectively, on them.
