RBC Capital upgrades Kinross Gold stock rating on cash flow outlook

Investing.com - RBC Capital upgraded Kinross Gold (NYSE:KGC) to Outperform from Sector Perform and raised its price target to $45 from $36.

The upgrade reflects the company’s high free cash flow generation, exposure to rising gold prices, stable operating outlook, and execution track record, according to analyst Josh Wolfson. The stock has delivered a remarkable 194% return over the past year, while maintaining a perfect Piotroski Score of 9, indicating strong financial health. According to analysis, the company currently trades slightly above its Fair Value.

RBC Capital forecasts Kinross will generate a 2026 free cash flow yield exceeding 11% at current gold prices. The company currently shows a 7% free cash flow yield with a low PEG ratio of 0.11, suggesting attractive valuation relative to growth. The firm expects this to support capital returns equal to 40% of free cash flow. Subscribers have access to 12 additional exclusive tips and comprehensive financial metrics for KGC.

The new price target incorporates RBC Capital’s updated gold price assumptions. The firm projects the cash flow generation will drive growth in per-share metrics for investors.

Kinross Gold operates gold mining assets across multiple jurisdictions. The company has outlined plans to return capital to shareholders while maintaining its operational program.

In other recent news, Kinross Gold reported its fourth-quarter 2025 earnings, which exceeded analysts’ expectations for earnings per share (EPS) but slightly missed revenue forecasts. The company posted an EPS of $0.67, surpassing the anticipated $0.5784 by 15.84%, while revenue reached $2.02 billion, just below the expected $2.04 billion. In addition to these earnings, RBC Capital upgraded Kinross Gold’s stock rating to Outperform from Sector Perform. The upgrade was influenced by the company’s projected free cash flow generation and its exposure to gold prices. RBC Capital has set a new price target of $45, up from $36, and forecasts a free cash flow yield exceeding 11% in 2026 at current gold prices. These developments reflect Kinross Gold’s strategic positioning in the market and its potential for future growth.