Eldorado Gold Receives Analyst Upgrade as Market Sentiment Shifts

On January 26, 2026, Scotiabank made a significant move by upgrading its outlook on Eldorado Gold (NYSE:EGO) from Sector Perform to Sector Outperform, signaling renewed confidence in the gold mining company’s prospects. This positive reassessment comes as multiple indicators suggest institutional investors are actively reassessing their positions in the stock.

Scotiabank Elevates Rating Amid Positive Outlook

The upgrade represents a notable shift in sentiment toward Eldorado Gold from one of Canada’s major financial institutions. While the rating upgrade is encouraging, market price expectations present a contrasting picture that investors should carefully consider. The data suggests a nuanced market view where strategic rating improvements may coexist with near-term price adjustments.

Price Forecast Reveals Market Expectations for EGO

As of January 14, 2026, analysts have established an average one-year price target of $38.43 per share for Eldorado Gold, with forecasts ranging from a conservative $30.96 to an optimistic $48.77. This average target implies a potential 20.21% decline from the stock’s closing price of $48.17, indicating that market consensus expects some near-term correction despite the positive rating.

Financial projections paint a mixed picture. The company’s projected annual revenue stands at 1,192 million, representing a 28.94% decrease from previous estimates. The projected non-GAAP earnings per share is forecasted at 4.48, providing some reassurance regarding profitability expectations even amid revenue headwinds. The put/call ratio of 0.38 suggests a bullish underlying sentiment among options traders, adding another layer of complexity to current market dynamics.

Institutional Players Reposition Holdings in Eldorado

Portfolio managers and institutional investors show varying degrees of conviction regarding Eldorado Gold’s outlook. Currently, 317 funds and institutions maintain positions in the company, representing a modest increase of 6 investors in the last quarter. The average portfolio allocation to EGO stands at 0.41%, though this represents a 3.67% increase in relative weighting. Notably, institutional ownership has contracted by 1.51% over the same period to 158,657 thousand shares, suggesting selective consolidation among larger holders.

Key Shareholder Moves and Portfolio Adjustments

Among major shareholders, Van Eck Associates holds the largest position with 16,500 thousand shares representing 8.22% ownership—a significant 25.30% increase from their prior filing of 12,326 thousand shares. The firm has correspondingly boosted its portfolio allocation by 56.06%, demonstrating strong conviction in Eldorado Gold.

Jennison Associates maintains 8,173 thousand shares (4.07% ownership), up 2.24% from 7,990 thousand shares previously reported. Despite this modest increase, the firm has raised its allocation by 42.61%, indicating deliberate portfolio emphasis.

Conversely, Donald Smith has reduced its stake from 10,481 thousand shares to 7,876 thousand shares (3.92% ownership), a 33.08% decrease, with portfolio allocation declining 9.58%. Similarly, the VanEck Vectors Gold Miners ETF has decreased its holdings from 7,358 thousand to 6,265 thousand shares (down 17.44%), reflecting cautious positioning despite managing overall gold sector exposure.

L1 Capital Pty presents an interesting case, having trimmed holdings from 7,494 thousand to 7,128 thousand shares (3.55% ownership)—a 5.13% reduction—yet paradoxically increased its portfolio allocation by 30.85%, suggesting relative portfolio rebalancing rather than changed conviction.

These divergent institutional moves underscore the complex market sentiment surrounding Eldorado Gold, balancing the optimism of Scotiabank’s upgrade against cautious positioning by some major shareholders.