Shares of gold mining company Newmont are at an “attractive entry point” and could jump more than 20% from here, according to Goldman Sachs. Analyst Emily Chieng initiated coverage of Newmont with a buy rating, saying the stock looks undervalued after falling 30% this year and that the company has new development projects in the pipeline that can boost growth. “Recent underperformance marks an attractive entry point for a low risk gold producer delivering volume growth,” Chieng wrote in a Monday note. Gold equities over the past year broadly lagged both the commodity and the broader market, according to the note. Gold mining companies are dealing with rising interest rates, a stronger dollar, as well as greater cost inflation. Still, the analyst argued that there are “tactical opportunities” to jump back into gold stocks as capital returns, production growth and margin expansion can differentiate some companies, and help them exceed both commodity and the market. The analyst further noted that Newmont offers the highest dividend yield among the firms in its precious commodities coverage, about 5% compared to 3% on average. Chieng said that concerns around rising development capital expenditures and project delays are priced into the stock. “We see above-peer production growth through 2026E with the startup of development projects including Ahafo North, Tanami Expansion 2, and Yanacocha Sulfides in the next 2-4 years,” Chieng added. The $53 12-month price target implies 22.8% upside from where shares closed Friday at $43.17. The stock rose 1.8% in Monday premarket trading. —CNBC’s Michael Bloom contributed to this report.