One of the biggest movers on the market today has been the St Barbara Ltd (ASX: SBM) share price.
In early afternoon trade the gold miner's shares are up over 10% to $2.94.
Why are its shares higher?
Following the release of its quarterly production update yesterday, the gold miner was the subject of a positive research note this morning.
A note out of Deutsche Bank reveals that its analysts have retained their buy rating on its shares and increased their price target to $3.20.
According to the note, the broker expects full-year production to come in at the high-end of its guidance range at 375,000 ounces.
In light of this it has upgraded its earnings forecast accordingly and expects earnings per share to come in at 32 cents.
Should you invest?
Based on Deutsche Bank's estimate, after today's strong gain St Barbara's shares are trading at a little over 9x forward earnings.
This is arguably still very good value compared to industry peers Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST). These two gold miners trade at approximately 40x and 13x estimated forward earnings.
This could make St Barbara a good investment option for those looking to gain exposure to gold.
However, with interest rates expected to rise four times in the United States between now and the end of next year, I wouldn't be in a rush to gain exposure to the industry.
