Certain S&P/ASX 200 Index (ASX: XJO) gold shares have had a glittering 12 months thanks to the strength of the gold price.
One top broker sees opportunities in the sector, so let's uncover which stocks could be options amid the elevated gold price for those miners.
According to the Australian Financial Review, analysts at Citi have increased their target prices on a number of ASX 200 gold shares because of the potential for the commodity price's golden run to continue in FY25.
Citi price targets lifted on ASX 200 gold shares
The AFR reported that Citi has increased their price targets on both Evolution Mining Ltd (ASX: EVN) and Genesis Minerals Ltd (ASX: GMD).
A price target is where a broker thinks the share price will be in 12 months from the time of the investment call.
According to the AFR, Citi lifted its price target on Evolution Mining from $5.80 to $6.00. At the current share price, that implies a possible rise of just over 1%.
Citi also increased the price target on Genesis Minerals to $3.40, up from $3.20. At the current Genesis Minerals share price, that implies the ASX gold share could rise by around 6% from where it is today. However, Citi did decide to decrease its rating on Genesis Minerals to a hold.
This bullishness comes from the fact that the investment bank decided to increase its forecast for the gold price to an average of US$2,900 for 2025, up from US$2,790. The gold price soared 27% last year, which significantly increases the ability of operational gold miners to deliver strong profits and cash flow.
As noted by my colleague Bernd Struben last week, Citi decided to increase its three-month gold price target to US$3,000 last week because of ongoing geopolitical tensions and fears Trump's tariffs will spark a global trade war.
Citi also said that a strong outlook for the US dollar could support ongoing buying of gold by central banks.
Another positive for Evolution Mining shares
The AFR also reported on commentary that Bell Potter rates Evolution Mining shares as a buy because the ASX 200 gold share's larger asset portfolio could benefit if the gold and copper prices continue their strong run.
Bell Potter's price target on the miner is $6.65, implying a possible rise of 12% from where it is today. The newspaper reported Bell Potter said:
While parts of the market have viewed these investments as expensive, our view (particularly in light of the current gold price environment and copper price outlook) is that these investments have been well-timed.
ASX 200 gold share valuation snapshots
In the last 12 months, the Evolution Mining share price has almost doubled, while the Genesis Minerals share price has gone up 109%.
