Gold Fields (GFI, Financial) has seen its stock rating downgraded by HSBC analyst Shilan Modi from Buy to Hold. The decision comes with a revised price target set at $21. The downgrade reflects concerns that the market is overvaluing South African gold miners, based on the expectation of sustained high gold prices.
The analysis suggests that current stock prices may already be factoring in elevated gold prices that exceed the spot market, creating potential downside risks. This shift in perspective emerges as the gold sector experiences a surge, with prices nearing record highs. As a result, the "safe-haven" investment in gold appears increasingly congested, prompting a more cautious outlook from HSBC on Gold Fields amid these market dynamics.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Gold Fields Ltd (GFI, Financial) is $22.00 with a high estimate of $26.00 and a low estimate of $18.00. The average target implies an downside of 8.88% from the current price of $24.15. More detailed estimate data can be found on the Gold Fields Ltd (GFI) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, Gold Fields Ltd's (GFI, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Gold Fields Ltd (GFI, Financial) in one year is $22.83, suggesting a downside of 5.45% from the current price of $24.145. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Gold Fields Ltd (GFI) Summary page.
