Fresnillo Shares Boosted As Price Target Raised to 1,700

Fresnillo plc (LON:FRES), the world's largest primary silver producer and a significant gold miner, is riding a wave of positive sentiment, fueled by a recent price target upgrade from Citi and strong technical momentum.

Citi analysts have significantly raised their price target for Fresnillo from 1,300 GBp to 1,700 GBp, reaffirming a “Buy” rating on the shares. This bullish signal, coupled with the stock's recent ascent to a new 52-week high, has investors taking notice of the precious metals miner's potential.

The move is indicative of a growing confidence in Fresnillo's operational performance and future prospects, despite some recent volatility in the broader market.

The upgrade from Citi comes amidst a backdrop of positive, yet mixed, analyst sentiment.

While Berenberg Bank recently lowered its price target slightly from 1,630 GBp to 1,620 GBp, it also maintained a “Buy” rating, suggesting continued confidence in the company's underlying value. This contrasts with earlier ratings from April, where firms like Canaccord Genuity Group assigned a “Hold” rating with a price target of 805 GBp, and Royal Bank of Canada held a “Sector Perform” rating with a target of 880 GBp.

Fresnillo shares' recent performance has been undeniably strong. The stock has risen 5.97% in the past month, and an impressive 126% since the start of this year. A look back at the historical price action shows FRES is currently trading at decades high levels, with clues as to potential resistance a long way back.