New Gold's Stock Price Target Raised to $9 by Canaccord Analyst, Maintaining Buy Rating

Analyst Jeremy Hoy from Canaccord has raised New Gold's (NGD) price target to C$9 from C$8.25, maintaining a Buy rating. The move follows Q2 results showing a rise in free cash flow, supporting further stock price gains as New Gold achieves short-term production growth objectives.

In a recent move, Jeremy Hoy from Canaccord Genuity raised the price target for New Gold (NGD) to C$9 from C$8.25, maintaining a Buy rating on the stock [1]. The analyst attributed the upward revision to the company's Q2 2025 results, which highlighted a significant increase in free cash flow and strong production growth.

New Gold reported quarterly gold production of approximately 78,600 ounces and copper production of around 13.5 million pounds in Q2 2025. This marked a 15% increase in gold production compared to the previous quarter, driven by higher throughput and improved grades at New Afton and Rainy River mines [2].

The analyst noted that New Gold's Q2 results exceeded expectations, with free cash flow increasing by 207% year-over-year. The company's strong performance was driven by higher production levels, record gold prices, and reduced sustaining capital spend. Additionally, the completion of the C-Zone cave construction and the expected ramp-up of production at Rainy River Underground are expected to further boost free cash flow in the coming quarters.

Canaccord's updated model reflects New Gold's improved financial position and the potential for continued stock price appreciation. The company's strong cash flow generation and the expected increase in production are likely to support further share price gains in the near term.

References:
[1] https://www.tipranks.com/news/the-fly/new-gold-price-target-raised-to-c9-from-c8-25-at-canaccord-thefly
[2] https://seekingalpha.com/article/4806107-new-gold-tale-of-two-halves