Maxim Group analyst Tate Sullivan has maintained their bullish stance on GROY stock, giving a Buy rating yesterday.
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Tate Sullivan has given his Buy rating due to a combination of factors tied to Gold Royalty’s improving fundamentals and growth outlook. He highlights that recent quarterly revenue grew strongly year over year and surpassed his own forecast, helped by a sharp rise in gold prices. In addition, he points to the company’s recent royalty acquisitions in Brazil as evidence that management is positioning the portfolio for substantial production and revenue growth over the next few years. Sullivan’s updated models now project significant increases in both revenue and earnings through 2027, shifting the company from a projected loss in 2025 to profitability in 2026 and beyond.
He also emphasizes Gold Royalty’s strengthened balance sheet following the redemption and conversion of convertible debt and a sizeable equity raise, which provides capital to pursue further accretive royalty deals. At the current share price, he notes that the stock trades at a modest multiple of his near-term book value estimate, leaving room for valuation expansion as assets ramp up and forecasts are met. These elements together support his higher price target of $7, implying a premium to current book value in line with improved financial flexibility and growth prospects. Based on this combination of stronger operations, an enhanced asset base, and a healthier capital structure, Sullivan reiterates his Buy recommendation on GROY.
In another report released yesterday, BMO Capital also maintained a Buy rating on the stock with a $5.50 price target.
Based on the recent corporate insider activity of 25 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GROY in relation to earlier this year.