A Look at Key Ratings Changes for Royalty and Streaming Companies



Franco-Nevada’s upgrade

In this part of the series, we’ll look at some recent analyst changes for royalty and streaming companies. Credit Suisse upgraded Franco-Nevada (FNV) from “neutral” to “outperform” on January 13, 2017.

Earlier, while issuing a “neutral” rating for the stock in November 2016, Credit Suisse mentioned that it likes the “higher-margin business model and track record of accretive acquisitions.” At that time, however, it wasn’t expecting FNV to benefit from a higher gold price environment since it had a lower gold price leverage.

On January 11, 2017, CIBC lowered FNV’s target price from $110 Canadian to $95 Canadian.

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Deutsche Bank (DB) initiated coverage of Franco-Nevada (FNV) stock in September 2016 with a “buy” rating and a target price of $37. The firm was happy that the company added eight more projects to its already strong portfolio of 22 projects. DB also upgraded Franco-Nevada to “hold” in September and raised the target price from $62 to $74.

Changes to Silver Wheaton’s ratings

Standpoint Research upgraded Silver Wheaton (SLW) stock from “hold” to “buy” in November 2016. National Bank Financial also upgraded SLW from “sector perform” to “outperform” in November.

Silver Wheaton is also one of Credit Suisse’s top picks.

Royal Gold and Sandstorm

National Bank Financial lowered Royal Gold’s (RGLD) target price from $85 to $80 on February 3, 2017. Previously, in January 2017, CIBC also reduced its target price from $90 to $73.

Canaccord Genuity cut Sandstorm Gold’s (SAND) target price from $9 Canadian to $8.50 Canadian on October 24, 2016. National Bank Financial, on the other hand, increased its target price from $7.50 Canadian to $8.50 Canadian.


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