Liberty Gold Corp. (LGD:TSX; LGDTF:OTCQX) got a 33% price target boost by Ventum Capital Markets to reflect the investment bank's newly raised gold price forecasts, analysts reported in a June 27 research note.
Within Ventum's precious metals coverage universe, Liberty is one of three companies "with the highest sensitivity to a further 10% increase in metal prices," the analysts wrote.
New Target 33% Higher
Ventum increased its long-term gold price on Liberty Gold to US$3,000 per ounce (US$3,000/oz) from US$2,400/oz previously. The bank boosted its near- and medium-term gold prices to align with current spot prices.
As a result, Ventum's net asset value per share on the Canadian gold explorer increased 79% to CA$3.81 from CA$2.13.
Ventum's target price on Liberty now is CA$1 per share, up 33% from CA$0.75. The revised target price multiple is 0.33x, up from 0.25x.
Liberty Gold remains a Buy.
The explorer has two main near-term catalysts, and both pertain to its Black Pine project in Idaho, analysts noted. They are results of a 40,000 meter, feasibility-level drill program and submission of an environmental impact statement application.
Gold in 2025 Recap
Ventum's analysts reported that year to date (YTD), the gold price increased 26.7%, and underlying gold indices are still outperforming other sectors and benchmark indices.
Gold-backed exchange-traded funds have continued to see increasing investment demand with YTD inflows in many regions trending higher. Multiyear highs continue to be tested.
"We expect continued inflows and interest from more generalist investors to continue diving into precious metals as sentiment is sustained and a favorable long-term thesis becomes more probable," wrote the analysts.
Support for Higher Prices
Ventum relayed the factors that should continue to buoy the gold price above US$3,000/oz in the long term. Uncertainty about tariffs and relationships between the U.S. and its trade partners are causing concerns about jobs, inflation and other related economic impacts. Global economic uncertainty is lingering; signs suggest a reduced global gross domestic product outlook for 2025 and 2026. The value of the U.S. dollar is down, having dropped US$0.06, or 9.5%, YTD. Likewise, the US Dollar Index fell 9.9%, indicating the dollar's weakening purchasing power compared to a group of other global currencies. Geopolitical turmoil in the Middle East and elsewhere continues to drive investors to seek save haven in gold and silver. All or most of these price influencers are expected to persist for gold.
Ventum's technical analysis reveals that a constructive cup and handle is forming on gold's 40-year chart. This is associated with longer-term upside beyond US$4,000/oz and consolidation seemingly bounded between US$3,200 and US$3,500/oz.
"With higher lows and a rising benchmark for three-year trailing prices used in sectorwide economic studies, we foresee elevated prices for gold and silver to be sustainable and supportive of a higher long-term outlook," Ventum analysts wrote.
| Want to be the first to know about interesting Gold investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. | Subscribe |
