Why Wall Street Is Still Bullish on Allied Gold (AAUC) After Its 45% Surge Farooq Mon, November 9, 2026 at 11:56 AM EST 4 min read ^GSPC +2.32% AAUC +0.74% ^DJI +2.06% ^IXIC +2.63% ^SOX +6.61% Trade AAUC on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
We just published a list of the Don't Miss Out: 10 Stocks Getting Major Upgrades From Top Analysts and Allied Gold (NYSE:AAUC) ranked 6th on this list. The stock has gained 45% over the past 12 months but analysts still see enormous upside.
Wall Street ended a punishing week on Friday with a partial recovery. The Nasdaq Composite rose 1.09% to 24,579.42 and the S&P 500 gained 0.31% to 7,376.86, while the Dow Jones Industrial Average slipped 0.46%, according to the Yahoo Finance live blog on November 6. The S&P 500 was still on track for its worst week since June.
Thursday did the damage. The S&P 500 fell more than 4%, its worst day since the April 2025 tariff crash, and about $3 trillion in market value disappeared, Yahoo Finance reported. The PHLX Semiconductor Index dropped 12%, its worst day since March 2020, and the Nasdaq slipped into a correction.
The trigger was political. After Tuesday's election, Democratic gains raised fears of tighter rules on AI data centers, Reuters reported on November 6, and investors worried that new rules could slow data center construction. For the week, technology stocks fell 7% and energy stocks fell 11%.
Volatility spiked along with prices. The VVIX rose as much as 70% on Thursday, a move seen only eight times since 1991, according to CBOE data cited by Yahoo Finance's Brian Sozzi. In the eight earlier cases, the S&P 500 averaged a 3.0% gain one month later and 14.7% one year later. You might also be interested in reading our piece on oversold AI stocks where Wall Street analysts are spotting 50%+ upside.
Friday's October jobs report added a second jolt. Employers added 165,000 jobs, more than twice what economists expected, and the unemployment rate ticked down to 4.1%, Reuters reported. Markets priced about a 78% chance of a quarter-point hike at the Federal Reserve's December meeting, up from about 67% a day earlier.
Fitch Ratings analyst Olu Sonola said the economy "remains on firm footing," and that the labor market's resilience pushes the debate toward a December hike. St. Louis Fed President Alberto Musalem, who has advocated further hikes, called inflation "a regressive tax, a distortionary tax." Our analysis of 52-week low technology stocks to buy according to analysts covers another group.
Federal Reserve Chairman Kevin Warsh said last month that policymakers would watch "the accumulation of data" to decide whether more tightening is needed. The 10-year Treasury yield was about 4.86% on Friday, up roughly 2 basis points, Yahoo Finance said. The Fed meets December 8-9, and a quarter-point hike is the widely expected outcome, according to Reuters.
Allied Gold has average upside potential of 40%, based on analysts' average price target, and a market cap of $3.22 billion. It had 26 hedge fund holders as of Q2 2026.
National Bank Financial analyst Mohamed Sidibé upgraded Allied Gold to Outperform from Sector Perform on November 6 and raised his price target to C$40 from C$37.
Sidibé pointed to better free cash flow "visibility" after the company's third-quarter results. Reports on the upgrade add that the updated guidance settles the main open question about production, and that progress at the Kurmuk mine plus possible capital returns in 2027 give him more confidence in the 2027 free cash flow outlook.
Allied says Kurmuk, its mine in Ethiopia, is now producing. Third-quarter gold output was 91,195 ounces, up 5% from a year earlier, and Kurmuk is expected to average about 300,000 ounces a year across its first four years. Allied guided total 2027 production to 615,000 to 670,000 ounces.
The company is also considering a base dividend beginning in 2027 and has proposed a buyback of up to 10% of its public float, which needs TSX approval. Third-quarter adjusted earnings were $0.37 per share on revenue of $358.1 million, compared with $305.6 million a year earlier. Adjusted earnings for the first nine months were $1.19 per share.
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