Franco-Nevada (FNV – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst yesterday. Analyst Lawson Winder from Bank of America Securities maintained a Hold rating on the stock and has a C$208.00 price target.
Lawson Winder has given his Hold rating due to a combination of factors impacting Franco-Nevada’s outlook. The company’s Q4’24 financial results exceeded expectations, with adjusted EBITDA and EPS surpassing consensus estimates. However, the guidance for 2025, while generally in line with expectations, appears slightly conservative when considering the mid-point of the guidance range. This cautious outlook is further reflected in the longer-term guidance for 2028 and 2029, which also seems light compared to consensus estimates.
Franco-Nevada’s diversified portfolio and strong exposure to precious metals are positive aspects, yet the stock’s premium valuation compared to its peers, despite modest growth prospects, tempers enthusiasm. Additionally, the exclusion of Cobre Panama volumes in the company’s guidance, which are included in other estimates, suggests a more mixed longer-term outlook. The solid balance sheet and increased dividend are favorable, but these factors collectively support a Hold rating, balancing the company’s strengths with its valuation and growth projections.
In another report released today, Scotiabank also maintained a Hold rating on the stock with a $150.00 price target.
Questions or Comments about the article? Write to editor@tipranks.com