Analyst Rene Cartier of BMO Capital maintained a Hold rating on Altius Minerals (ALS – Research Report), retaining the price target of C$24.00.
Rene Cartier has given his Hold rating due to a combination of factors influencing Altius Minerals’ current financial and strategic position. The company’s Q4/24 results were largely in line with expectations, with adjusted EPS meeting estimates and adjusted EBITDA slightly surpassing them. However, operating cash flow fell short of expectations, which could indicate potential liquidity concerns in the short term.
Additionally, Altius is awaiting a final decision on the Silicon royalty arbitration, which adds an element of uncertainty to its future revenue streams. While the company has a solid cash position and continues to explore organic growth opportunities, its current trading price is above historical averages and at a premium compared to peers. This valuation, coupled with the pending arbitration outcome, suggests a cautious approach, justifying the Hold rating.
Cartier covers the Basic Materials sector, focusing on stocks such as Western Copper, Sandstorm Gold, and Osisko Gold Royalties. According to TipRanks, Cartier has an average return of 17.1% and a 54.64% success rate on recommended stocks.
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