In a report released yesterday, Etienne Ricard from BMO Capital maintained a Buy rating on Sprott (SII – Research Report), with a price target of C$94.00.
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Etienne Ricard has given his Buy rating due to a combination of factors that highlight Sprott’s strong market position and growth potential. The company is expected to achieve over 10% net flows in 2025, driven by increasing demand for its physical gold, silver, and uranium trusts, which constitute a significant portion of its assets under management. Despite a substantial 46% increase in stock price year-to-date, Sprott’s earnings valuation remains aligned with historical norms and is supported by comparisons with industry peers.
Additionally, Sprott has demonstrated impressive net flow performance, with a near-record $1.1 billion in estimated Q2 net flows, indicating heightened investor interest. The Sprott Physical Uranium Trust has also returned to positive net flows, aided by a successful $200 million offering. The company’s operating leverage in favorable precious metals markets and its scalable business model, which generates significant free cash flow, further bolster its investment appeal. Consequently, the target price for Sprott has been raised, reflecting both commodity price adjustments and increased net flows.