NGD: Revenue Will Rise With $4,500 Gold And Outperformance Will Continue

Analysts have raised their price targets on New Gold. Recent increases reflect higher gold and silver price forecasts as well as strong year-to-date stock performance.

Analyst Commentary

Recent street research updates show analysts adjusting their outlooks on New Gold, primarily driven by strengthened gold and silver price forecasts and the company’s solid stock performance to date. The following summarizes current sentiment:

• Bullish analysts have raised their price targets for New Gold significantly. These increases reflect higher forecasted prices for both gold and silver through 2026 and 2027.
• The company continues to receive Outperform ratings, which suggests confidence in New Gold’s near-term upside and operational execution.
• Upward revisions to the company’s valuation are seen as a response to strong gold price momentum and year-to-date stock outperformance. This may indicate further room for growth if current trends persist.
• The updated commodity price forecasts imply that New Gold remains well-positioned to benefit from favorable macroeconomic conditions in the gold and silver markets.

• Some analysts characterize the latest price target revisions as "catch-up" calls. This implies that recent updates may lag ongoing performance rather than anticipate future gains.
• The recent sharp run in both commodity prices and New Gold’s stock may temper expectations for incremental upside, as some of the outperformance has already been reflected in the share price.
• Rising valuations could introduce higher expectations for continued operational execution, putting pressure on the company to meet or exceed current forecasts.

What's in the News

• Coeur Mining entered into a definitive agreement to acquire New Gold Inc. in a deal valued at approximately $6.8 billion. New Gold shareholders are set to receive 0.4959 Coeur shares per New Gold share. The transaction is expected to close in the first half of 2026, subject to court, regulatory, and shareholder approvals. (Key Developments)
• New Gold reaffirmed its 2025 production guidance. The company remains on track to achieve annual expectations, with gold production forecasted between 325,000 and 365,000 ounces. Copper production is expected to be at the midpoint of 50 to 60 million pounds. (Key Developments)
• The company remains active in seeking acquisitions and investments, with a focus on maintaining a strong balance sheet, investing in exploration, and taking a disciplined approach to mergers and acquisitions to enhance per share value. (Key Developments)
• New Gold reported consolidated production of 115,213 ounces of gold and 12 million pounds of copper in the third quarter of 2025. Year-to-date gold output has surpassed the prior year. (Key Developments)
• Significant exploration success was reported at the New Afton mine. Expansion drilling doubled the size of the K-Zone mineralized system, and the 2025 exploration budget for New Afton was increased by $5 million to support further resource delineation. (Key Developments)

Valuation Changes

• Fair Value: Remained unchanged at CA$15.12 per share, reflecting no adjustment in intrinsic value estimates.
• Discount Rate: Increased slightly from 7.19% to 7.21%. This indicates a marginally higher required rate of return on future cash flows.
• Revenue Growth: Stayed virtually flat at 14.07% in both the previous and updated assessments.
• Net Profit Margin: Decreased modestly from 39.65% to 39.30%. This suggests a slight downward revision in expected profitability.
• Future P/E: Edged higher from 14.38x to 14.57x, representing a small increase and reflecting updated market expectations for future earnings.