Fresnillo Price Target Raised Higher as Analysts Become Increasingly Bullish

Fresnillo plc (LON:FRES) is drawing increased attention from analysts, with JPMorgan and Berenberg both raising their price targets on the stock.

This bullish sentiment comes after a period of strong performance, with shares hitting fresh highs at 1,749 today, and continuing to climb higher.

Looking to the street, JPMorgan analyst Patrick Jones increased the firm's price target to 2,100p from 1,850p, reiterating an Overweight rating. This revision is largely driven by a robust outlook for gold prices, with JPMorgan forecasting a 20% increase, potentially exceeding $4,000 per ounce by mid-2026.

The rationale behind this projection includes anticipated interest rate cuts by the Federal Reserve and increased gold purchases by central banks globally.

Moreover, Fresnillo's improved operational performance, including higher 2025 gold output guidance and stable long-term production achieved through brownfield investments, further supports JPMorgan's optimistic stance.

Berenberg also joined the chorus of bullish analysts, raising its price target to 1,700p from 1,620p while maintaining a Buy rating on Fresnillo shares. Berenberg's initial upgrade in March which has since been upgraded again, highlighted the company's improved financial performance, driven by strong precious metal prices, operational stability, and enhanced cost control measures.

The firm also pointed to Fresnillo's commitment to shareholder returns, including the announcement of a special dividend, with the potential for additional payouts if silver and gold prices remain elevated.

The consensus among analysts appears to be that Fresnillo is well-positioned to benefit from rising precious metal prices and improved operational efficiency.

While valuation concerns remain a factor, the potential for strong cash generation and attractive dividend yields could drive further upside for the stock. Investors will likely be closely monitoring upcoming earnings reports and any further developments in the gold and silver markets to gauge the sustainability of this positive outlook.

The next few months will be crucial in determining whether Fresnillo can deliver on the high expectations currently priced into its stock.