Franco-Nevada, the Basic Materials sector company, was revisited by a Wall Street analyst yesterday. Analyst Lawson Winder from Bank of America Securities maintained a Hold rating on the stock and has a C$255.00 price target.
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Lawson Winder has given his Hold rating due to a combination of factors influencing Franco-Nevada’s current market position. The company reported better-than-expected Q2’25 earnings, with adjusted EBITDA and EPS surpassing consensus estimates, primarily due to gains from the sale of gold and silver bullion. Despite these positive results, Franco-Nevada’s sales volumes were slightly below expectations, and the company’s valuation appears to reflect more modest long-term growth prospects.
Franco-Nevada has been active in acquiring new royalties and streams, investing approximately $1.6 billion year-to-date, which demonstrates a strong pipeline of opportunities. However, the company’s net cash position has significantly decreased due to these acquisitions, affecting its liquidity. While the company maintains a robust exposure to precious metals and has reiterated its 2025 guidance, the current valuation and financial position suggest a balanced outlook, justifying the Hold rating.
In another report released on August 4, RBC Capital also maintained a Hold rating on the stock with a $190.00 price target.