Broker jumps on board this quality ASX gold stock and tips 50% upside

Since hitting multi-year highs back in March, it has been a steady decline for ASX gold stock Regis Resources Ltd (ASX: RRL). 

It is an established multi-mine gold producer and one of the largest ASX-listed gold producers with an all-Australian asset base. 

The Duketon Gold Project (located in the Laverton region of WA) is RRL’s flagship project. 

Rollercoaster for gold stocks 

Like many other ASX gold stocks, it enjoyed a surge into early 2026 as the gold price climbed to record highs. 

This was driven by strong safe-haven demand, expectations of lower interest rates in major economies, central bank buying, and investor optimism that miners’ profits and cash flows would increase. 

However, like much of the sector, Regis Resources shares have since fallen as gold prices retreated from their peaks, and investors rotated into riskier assets amid improving market sentiment. 

Since peaking at over $9.40 per share in March, it has now fallen over 40% and is now sitting at around $5.65 per share. 

However, this ASX gold stock is now generating broker interest. 

Yesterday, the team at Bell Potter updated their outlook on Regis Resources, which included a retained buy recommendation and strong upside. 

Here’s what the broker had to say. 

FY27 guidance lifted

Late last week, Regis Resources released an updated FY27 outlook. 

As Laura Steward reported, the company lifted its FY27 production guidance, aiming for 360,000–400,000 ounces of gold at a group all-in sustaining cost of $2,990–$3,390 per ounce.

Bell Potter said this production is similar to FY26. 

Higher production at Duketon should offset slightly lower production at Tropicana. 

Costs are expected to rise because the company is mining more expensive ounces and facing higher diesel costs. 

Ramelius is also increasing spending on mine development and exploration, which should support future growth but will lift capital spending in FY27.

Healthy upside for ASX gold stock

Based on this guidance, Bell Potter retained its buy recommendation on this ASX gold stock. 

However the broker has lowered its price target to $8.45 (previously $9.45). 

However, from yesterday’s closing price, this still indicates an upside of almost 50%. 

Overall, we remain positive towards RRL’s all-Australian, multi-mine asset portfolio, leverage to the gold price and its fully unhedged, debt free position. However, higher costs and CAPEX cut our NPV-based valuation 11%, to $8.45/sh. We retain our Buy recommendation.

Bell Potter isn’t the only expert tipping a rebound for gold stocks.

Recently, the VanEck published a report suggesting many ASX gold shares remain attractively valued after the recent pullback.

The post Broker jumps on board this quality ASX gold stock and tips 50% upside appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.