Analyst Heiko Ihle of H.C. Wainwright reiterated a Buy rating on Gold Royalty (GROY – Research Report), retaining the price target of $5.75.
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Heiko Ihle has given his Buy rating due to a combination of factors that highlight Gold Royalty’s promising financial outlook and strategic positioning. The company reported a notable increase in its average realized gold price, which contributed to a positive operating cash flow despite a slight decline in gold equivalent ounce sales. This financial performance aligns with management’s objective to maintain cash flow positivity throughout the year.
Furthermore, Ihle emphasizes the company’s potential for growth, supported by its production guidance and the ramp-up of several projects. The valuation of Gold Royalty’s assets, including the Canadian Malartic asset and the Côté Gold Mine, is based on favorable discount rates, reflecting their strategic importance and potential. Additionally, the anticipated increase in revenue in the latter half of 2025, driven by assets nearing commercial production, underpins the Buy rating. Ihle also notes the potential for future mergers and acquisitions to enhance the company’s royalty portfolio, contributing to its long-term growth prospects.