The Newcrest Mining Ltd (ASX: NCM) share price has been a solid performer in 2023.
Since the start of the year, the ASX 200 gold miner's shares have risen 8%.
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Can the Newcrest share price keep rising?
The good news for investors is that one leading broker believes the Newcrest share price has room to climb.
According to a note out of Morgans, its analysts have upgraded the ASX 200 gold miner's shares to an add rating with a $25.70 price target.
Based on the current Newcrest share price of $22.49, this implies potential upside of over 14% for investors over the next 12 months.
Throw in the 1.7% dividend yield that Morgans expects in FY 2023 and you have a total potential return of approximately 16%.
What did the broker say about this ASX 200 gold miner?
Morgans made the move thanks to the company's Cadia operation and higher gold price assumptions. The broker explained:
We upgrade NCM to an ADD rating (from Hold) following an upgrade to medium term capex assumptions on Cadia and applying higher gold price forecasts. The highlight of last week's 2Q23 result was the consistent group numbers across production and costs, with NCM's fundamentals supported heavily by the quality of Cadia
While not a period without its blemishes, we see a dependable production and earnings base from which NCM can ride recovering gold and copper prices. Trailing its smaller gold peers, we see an emerging value proposition on offer in NCM, which benefits from mine diversification, solid margins, and long-life reserves.
All in all, the broker appears to see Newcrest as a top ASX 200 gold mining share to buy right now.
