UBS believes that the valuation of Australian lithium and gold mining stocks is undervalued.

UBS analysts said that Australian lithium miners still offer "attractive risk return" and that the Middle East conflict could boost demand for electric vehicles. UBS upgraded IGO's rating from "neutral" to "buy" and reiterated their "buy" ratings for Liontown and PMET Resources. The bank downgraded PLS's rating from "buy" to "neutral". These analysts said that UBS believes the lithium market "has the potential for another upturn cycle". They also expect gold to "regain its status as a safe haven/diversification investment tool". UBS' top picks for Australian gold miners are Newmont and Genesis Minerals, both of which have a "buy" rating. The bank also upgraded Evolution Mining's rating from "sell" to "neutral".