Eldorado Gold Attracts Institutional Upgrades as Van Eck and Major Funds Reassess Positioning

Major financial institutions are reassessing their stance on Eldorado Gold (NYSE:EGO), with significant shifts in both analyst ratings and fund positioning signaling a complex investment landscape for this gold mining heavyweight. Scotiabank’s recent move to elevate its outlook demonstrates the sector’s appeal to institutional players, though valuation concerns persist.

Scotiabank Raises Rating Amid Gold Market Dynamics

On January 26, 2026, Scotiabank upgraded its rating for Eldorado Gold from Sector Perform to Sector Outperform, a signal that the bank sees improving prospects in the gold mining space. This upgrade reflects growing confidence in the company’s positioning within the broader precious metals sector, even as macro conditions remain uncertain. The timing of this upgrade coincides with renewed institutional interest in gold equities as a hedge against economic pressures.

Price Targets Suggest Cautious Outlook for Near Term

Despite the Scotiabank upgrade, analyst sentiment on valuation remains guarded. As of January 14, 2026, the consensus one-year price target for Eldorado Gold stands at $38.43 per share, with predictions ranging from $30.96 to $48.77. This average target implies a downside of 20.21% from the stock’s recent closing price of $48.17, indicating that even after the upgrade, analysts see limited upside potential in the near term. The median forecast suggests that markets may have already priced in much of the positive sentiment.

The company’s projected annual revenue is expected to reach $1,192 million, reflecting a 28.94% decline, while the projected non-GAAP EPS stands at $4.48. These figures underscore the challenging operational environment facing the company, despite recent sentiment shifts among major shareholders.

Institutional Investors Navigate Shifting Opportunities

Fund positioning in Eldorado Gold reveals nuanced strategies among major investors. As of the latest reporting period, 317 institutional funds and firms hold positions in the company, representing an increase of 6 owners compared to the prior quarter. The average institutional portfolio weight dedicated to EGO stands at 0.41%, up 3.67% sequentially, though total institutional share count decreased by 1.51% to 158,657 thousand shares. The put/call ratio of 0.38 suggests a predominantly bullish technical outlook among options traders.

Van Eck Associates, a leading name in gold mining investments, holds 16,500 thousand shares representing 8.22% ownership—a significant stake that reflects the firm’s conviction in the sector. Notably, Van Eck increased its position by 25.30% from its prior filing (from 12,326K shares) and raised its portfolio allocation by 56.06% over the quarter, signaling aggressive repositioning in favor of gold miners. This aggressive buying by such a prominent investor sends a strong signal to the market about institutional confidence in the space.

Divergent Strategies Among Major Stakeholders

Not all major investors share Van Eck’s bullish posture. Jennison Associates, another significant institutional holder with 8,173 thousand shares (4.07% ownership), increased its position more modestly by 2.24%, raising its portfolio allocation by 42.61%. This more tempered approach suggests selective confidence rather than outright conviction.

In contrast, Donald Smith reduced its stake from 10,481 thousand shares to 7,876 thousand shares, representing a 33.08% decrease, while trimming its portfolio allocation by 9.58%. Similarly, L1 Capital Pty and GDX - VanEck Vectors Gold Miners ETF both reduced their share counts, though L1 Capital paradoxically increased its portfolio allocation by 30.85%, suggesting a deliberate rebalancing strategy despite lower absolute share count.

The divergence in institutional strategies reflects competing views on Eldorado Gold’s outlook, with seasoned investors like Van Eck doubling down on exposure while others exercise caution. This mixed institutional positioning, combined with Scotiabank’s upgrade and persistent valuation concerns, paints a picture of a stock in transition—one that may offer opportunities for contrarian investors but carries meaningful execution risks for near-term traders.