DJ MARKET TALK: UBS Lifts Newcrest To Buy As Gold Forecasts Jump
2335 GMT [Dow Jones] STOCK CALL: UBS lifts its forecasts for gold in light of "extraordinary events" in financial markets in recent weeks, spurring it to move Newcrest Mining (NCM.AU) to Buy from Neutral. UBS is now looking at gold to average US$1,665/oz this year rather than US$1,500/oz, then to jump to an average US$2,075/oz in 2012 instead of US$1,380/oz. Gold is forecast to average US$1,725/oz in 2013 against a previous view of US$1,200/oz. Average earnings estimates for gold stocks and by-product producers all have been raised significantly. UBS also raises Oz Minerals (OZL.AU) and Kagara (KZL.AU) to Buy from Neutral, but says this is primarily due to recent share price falls. ([email protected])
