AngloGold Ashanti Cut to Underweight at ABSA: Has the Golden Run Finally Ended?

AngloGold Ashanti shares lost a key support as ABSA Securities downgraded the gold miner to Underweight and set a $100.82 price target. The downgrade follows a strong multi-year rally in gold and gold mining equities and comes after AU climbed 110% over the past year. ABSA’s view centers on reduced upside potential after gold prices have already advanced, alongside concerns about mining cost inflation, operational and jurisdictional risks, and valuation that has moved closer to fundamentals. AngloGold operates across Africa, the Americas, and Australia, including assets such as Geita, Obuasi, Kibali, Tropicana, Sukari, Siguiri, and Cerro Vanguardia. Recent results showed Q1 2026 EPS of $2.52 on $3.15 billion revenue, record free cash flow, an interim dividend, and a proposed $2 billion share repurchase program.

"Shares of AngloGold Ashanti ( NYSE:AU | AU Price Prediction) just lost a key voice of support. ABSA Securities downgraded the gold miner to Underweight with a $100.82 price target, a notable bearish pivot after a powerful multi-year rally in both gold and gold mining equities. For long-term investors, the call raises a fair question: has the golden run finally ended?"

"The downgrade reflects concern that gold prices have run far enough that further upside is harder to underwrite from here. The bear case on AngloGold Ashanti also leans on mining cost inflation, operational and jurisdictional risk, and a valuation that has caught up to the fundamentals."

"AngloGold Ashanti is one of the world's largest gold producers, with operations across Africa, the Americas, and Australia. The portfolio now includes Geita, Obuasi, Kibali, Tropicana, Sukari in Egypt, Siguiri, and Cerro Vanguardia, following the Centamin acquisition completed November 22, 2024 for roughly $1.8 billion net."

"AngloGold posted Q1 2026 EPS of $2.52 on revenue of $3.15 billion, with record free cash flow and a 116 U.S. cents interim dividend, alongside a proposed $2 billion share repurchase program. AU stock trades at a P/E ratio of 14x with a forward multiple of 13x, against a 52-week range of $40.34 to $127.01."

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