Weiss Ratings Upgrades Franco-Nevada to Buy as Analysts React

Weiss Ratings has upgraded shares of Franco-Nevada Corporation (NYSE:FNV) from a hold rating to a buy rating, reflecting a positive outlook for the company’s performance. This decision, announced in a research note released on October 14, 2023, follows a series of favorable assessments from various financial analysts.

Several other institutions have also recently revised their ratings on Franco-Nevada. On October 17, 2023, Zacks Research elevated Franco-Nevada from a “hold” to a “strong buy” rating. Additionally, UBS Group increased its price target for the stock from $250.00 to $260.00, maintaining a “buy” rating as of October 16, 2023. Raymond James Financial also raised their target from $218.00 to $234.00 and rated the company as “outperform” in a report released on October 10, 2023.

Despite the positive ratings from most analysts, Wall Street Zen downgraded Franco-Nevada from a “buy” to a “hold” rating in its latest review. Meanwhile, TD Securities adjusted their price objective from $182.00 to $184.00 while maintaining a “hold” rating as of August 12, 2023. Overall, the consensus indicates that two analysts rated the stock as a “strong buy,” seven assigned a “buy” rating, and five classified it as a “hold.” According to data from MarketBeat.com, Franco-Nevada currently holds an average rating of “Moderate Buy” with a consensus target price of $216.14.

Franco-Nevada’s Recent Performance and Financials

On October 14, 2023, shares of Franco-Nevada experienced a decline of 3.2%, opening at $183.98. Over the past year, the stock has fluctuated significantly, hitting a low of $112.70 and a high of $225.63. The company reports a market capitalization of $35.45 billion and has a price-to-earnings ratio of 45.20, with a PEG ratio of 1.76 and a beta of 0.42.

The most recent earnings report was released on August 11, 2023. Franco-Nevada reported earnings per share (EPS) of $1.24, exceeding analysts’ expectations of $1.10 by $0.14. The company achieved revenue of $369.40 million for the quarter, although this figure fell short of the estimated $382.70 million. Notably, the company’s revenue increased by 42.0% year-over-year. Analysts anticipate that Franco-Nevada will post an EPS of 3.09 for the current year.

Dividends and Institutional Investment Trends

Franco-Nevada announced a quarterly dividend of $0.38 per share, which was paid out on September 25, 2023, to shareholders on record as of September 11, 2023. This equates to an annualized dividend of $1.52, yielding approximately 0.8%. The company’s current dividend payout ratio stands at 37.35%.

Recently, several institutional investors have adjusted their holdings in Franco-Nevada. For instance, Cullen Frost Bankers Inc. acquired a new position in the stock valued at $32,000 in the first quarter. Similarly, MTM Investment Management LLC also invested $32,000 in the second quarter. Smartleaf Asset Management LLC notably increased its holdings by 600.0%, now owning 196 shares valued at around $32,000 after purchasing an additional 168 shares.

Another significant increase came from Golden State Wealth Management LLC, which raised its holdings by 78.3%, now holding 205 shares worth approximately $34,000. Finally, Hexagon Capital Partners LLC expanded its holdings by 494.7%, bringing its total to 226 shares valued at $36,000. Currently, institutional investors hold approximately 77.06% of Franco-Nevada’s stock.

Franco-Nevada operates primarily as a gold-focused royalty and streaming company, with extensive operations across South America, Central America, Mexico, the United States, and Canada. The company focuses on precious metals, including gold, silver, and platinum group metals, and is also involved in the sale of crude oil, natural gas, and natural gas liquids through third-party marketing agents.