Franco-Nevada (FNV) has received a new Buy rating, initiated by BMO Capital analyst, Matt Murphy.
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Matt Murphy’s rating is based on Franco-Nevada’s extensive portfolio of royalties and streams, which provides significant optionality to investors. With over 430 assets, the company offers exposure to exploration success and growth, especially in a high gold price environment. The ramping up of new mines such as Tocantinzinho, Greenstone, and Salares Norte this year further enhances its growth prospects.
Additionally, the potential restart of the Cobre Panama asset could significantly increase Franco-Nevada’s valuation. The asset, which constitutes a substantial portion of the company’s net asset value, could add considerable value if it resumes operations. Franco-Nevada’s flexibility in adapting to changes, such as the temporary loss of Cobre Panama, by closing new deals and diversifying its commodity mix, also supports the Buy rating. The company’s strong position in the market and potential for growth in the current gold bull market are key factors in Matt Murphy’s positive outlook.
According to TipRanks, Murphy is a 5-star analyst with an average return of 18.3% and a 69.64% success rate. Murphy covers the Basic Materials sector, focusing on stocks such as Agnico Eagle, Barrick Gold, and Franco-Nevada.
In another report released on April 11, UBS also maintained a Buy rating on the stock with a $190.00 price target.