Update shared on 06 Nov 2025
Fair value Increased 10%Allied Gold's analyst price target has increased significantly, rising by approximately C$3.45 to reflect improved revenue forecasts and higher expected profit margins, according to recent analyst updates.
Analyst Commentary
Recent analyst activity reflects a mix of optimism and caution regarding Allied Gold's outlook. Both bullish and bearish analysts have recently updated their price targets, citing shifts in the company's fundamentals and market environment.
Bullish Takeaways- Bullish analysts have raised their price targets and highlighted improved revenue forecasts, predicting higher profit margins for the company.
- Continued strong operational execution is expected to support further earnings growth and value creation for shareholders.
- Allied Gold's strategic initiatives are believed to position the company well for future expansion in both its core and emerging markets.
- Growth prospects remain robust, with analysts expressing confidence in the management team's ability to deliver against its targets.
- Some bearish analysts have revised their price targets lower, reflecting concerns about potential execution risks and near-term headwinds.
- Uncertainties surrounding market volatility and commodity pricing continue to weigh on more cautious outlooks.
- There are ongoing questions about whether Allied Gold can maintain recent profit margin improvements over the longer term.
What's in the News
- Ongoing exploration and resource expansion at the Sadiola Mine in Mali, with Phase 1 of a two-phase expansion plan set to complete this quarter. Continued drilling is expected into 2026 (Key Developments).
- Production guidance for 2025 reaffirmed. Allied Gold expects annual output above 375,000 gold ounces, which aligns with its broader outlook of 375,000 to 400,000 ounces per year (Key Developments).
- Third quarter 2025 production results announced, with over 87,020 ounces of gold produced (Key Developments).
- Completion of a CAD 175.04 million follow-on equity offering, with several changes in lead underwriters. Cormark Securities Inc. and CIBC World Markets, Inc. joined and exited as co-leads (Key Developments).
Valuation Changes
- The Fair Value Estimate has risen from CA$34.11 to CA$37.56, reflecting higher projected company value.
- The Discount Rate increased slightly from 6.74% to 7.04%, indicating a modestly higher risk assessment in valuation assumptions.
- The Revenue Growth outlook has improved, moving from 28.34% to 32.23%.
- The Net Profit Margin is expected to increase significantly, from 32.56% to 46.30%.
- The Future P/E Ratio has declined from 6.03x to 4.27x, suggesting the stock is projected to trade at a lower multiple of future earnings.
Disclaimer
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