New Gold Inc. (NGD) is emerging as a focal point for hedge funds, signaling its potential as a prominent undervalued Canadian stock. Recent analyst upgrades and favorable market conditions, particularly in the precious metals sector, underscore this assessment. The company's robust financial and operational performance in the third quarter of 2025 further solidifies its position, making it an attractive prospect for investors seeking growth in the mining industry.
Amidst a volatile global economic landscape, New Gold Inc. (NGD) has garnered significant attention from hedge funds, positioning it as a top undervalued Canadian stock. This interest is bolstered by recent positive revisions in price targets from leading financial institutions. Scotiabank, through its analyst Eric Winmill, elevated New Gold's price target to $12.75 from $10.50, maintaining an 'Outperform' rating. This adjustment reflects a broader re-evaluation of the gold and precious minerals market, driven by escalating economic and geopolitical uncertainties. Concurrently, Canaccord also increased its price target for NGD to C$18 from C$15, upholding a 'Buy' rating. These upward revisions are predicated on strengthened forecasts for gold and silver, which are benefiting from persistent strong buying trends by central banks and a general flight to safe-haven assets.
The strategic importance of New Gold Inc.'s operations and its recent financial achievements highlight why it's considered an undervalued asset. As an intermediate gold mining firm, NGD specializes in the development and operation of mineral properties across Canada, with a primary focus on gold, silver, and copper deposits. The third quarter of 2025 was particularly remarkable for the company, as it achieved an all-time production record at its Rainy River mine. This exceptional operational success, combined with a strong gold price environment, enabled NGD to generate a substantial $205 million in free cash flow, marking an impressive 225% increase from the previous quarter. The Rainy River mine alone was a significant contributor, accounting for $183 million of this free cash flow. Consolidated production during this period reached 115,200 ounces of gold and 12 million pounds of copper, while all-in sustaining costs saw a considerable reduction to $966 per gold ounce, underscoring the company's efficiency and profitability.