Is New Gold (NGD) One of the Most Undervalued Canadian Stocks to Buy According to Hedge Funds?

New Gold Inc. (NYSEAMERICAN:NGD) is one of the most undervalued Canadian stocks to buy according to hedge funds. On January 26, Scotiabank analyst Eric Winmill raised the firm’s price target on New Gold to $12.75 from $10.50 with an Outperform rating. The firm is updating targets across its Gold & Precious Minerals coverage, driven by increased forecasts for gold and silver. These higher projections are supported by economic and geopolitical uncertainty, as well as continued strong buying from central banks.

Earlier on January 23, Canaccord raised its price target for New Gold Inc. (NYSEAMERICAN:NGD) to C$18 from C$15 while maintaining a Buy rating.

In Q3 2025, New Gold Inc. (NYSEAMERICAN:NGD) reported an all-time production record at its Rainy River mine and strong gold prices. The company generated $205 million in free cash flow, a 225% increase over the previous quarter, with Rainy River alone contributing a record $183 million. Consolidated production reached 115,200 ounces of gold and 12 million pounds of copper, while all-in sustaining costs dropped significantly to $966 per gold ounce.

New Gold Inc. (NYSEAMERICAN:NGD) is an intermediate gold mining company that develops and operates mineral properties in Canada. It primarily explores for gold, silver, and copper deposits.

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Disclosure: None. This article is originally published at Insider Monkey.