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

Shares of AngloGold Ashanti (NYSE:AU) conscionable mislaid a cardinal dependable of support. ABSA Securities downgraded the golden miner to Underweight with a $100.82 terms target, a notable bearish pivot aft a almighty multi-year rally successful some golden and golden mining equities. For semipermanent investors, the telephone raises a just question: has the aureate tally yet ended?

AU banal has been 1 of the champion performers successful the materials complex, climbing 110% implicit the past year. With the expert downgrade arriving aft that surge, ABSA's presumption is that the casual wealth successful AngloGold Ashanti banal whitethorn already beryllium down investors.

The Analyst's Case

ABSA is simply a South African concern slope with heavy mining assemblage coverage, and its Underweight telephone carries meaningful value successful the golden space. The downgrade reflects interest that golden prices person tally acold capable that further upside is harder to underwrite from here.

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The carnivore lawsuit connected AngloGold Ashanti besides leans connected mining outgo inflation, operational and jurisdictional risk, and a valuation that has caught up to the fundamentals.

Company Snapshot

AngloGold Ashanti is 1 of the world's largest golden producers, with operations crossed Africa, the Americas, and Australia. The portfolio present includes Geita, Obuasi, Kibali, Tropicana, Sukari successful Egypt, Siguiri, and Cerro Vanguardia, pursuing the Centamin acquisition completed November 22, 2024 for astir $1.8 cardinal net.

Recent results person been strong. AngloGold posted Q1 2026 EPS of $2.52 connected gross of $3.15 billion, with grounds escaped currency travel and a 116 U.S. cents interim dividend, alongside a projected $2 cardinal stock repurchase program.