H.C. Wainwright analyst Heiko Ihle reiterated a Buy rating on Gold Royalty (GROY – Research Report) today and set a price target of $5.75.
Heiko Ihle has given his Buy rating due to a combination of factors that highlight Gold Royalty’s strong financial performance and promising future outlook. The company reported significant revenue growth in 2024, reaching $10.1 million compared to $3.0 million in 2023, primarily driven by increased sales of Gold Equivalent Ounces (GEOs) and favorable gold pricing. This growth was accompanied by a substantial reduction in net loss, indicating improved financial health.
Looking ahead, Ihle notes that Gold Royalty’s management has provided optimistic guidance for 2025, with expectations of positive free cash flow and increased GEO sales. The company anticipates further revenue growth from ongoing and new production sites, such as Côté, Vareš, and Borborema. Additionally, the long-term outlook is promising, with a projected increase in GEOs to 23,000 – 28,000 by 2029, representing a significant growth from 2024 levels. These factors collectively support Ihle’s Buy rating, reflecting confidence in the company’s ability to enhance its financial position and flexibility.
Based on the recent corporate insider activity of 53 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of GROY in relation to earlier this year.