Franco-Nevada (NYSE:FNV) Upgraded by TD Cowen to “Buy” Rating

Franco-Nevada (NYSE:FNV) (TSE:FNV) was upgraded by stock analysts at TD Cowen from a “hold” rating to a “buy” rating in a report released on Wednesday. The firm currently has a $291.00 price target on the basic materials company’s stock. TD Cowen’s target price would indicate a potential upside of 30.75% from the company’s current price.

Other analysts have also issued research reports about the company. UBS Group reiterated a “buy” rating and issued a $310.00 price target on shares of Franco-Nevada in a report on Friday, January 30th. Scotiabank lifted their target price on Franco-Nevada from $286.00 to $290.00 and gave the company a “sector perform” rating in a research report on Thursday, May 14th. Canaccord Genuity Group upgraded Franco-Nevada from a “hold” rating to a “buy” rating in a report on Wednesday, April 29th. Canadian Imperial Bank of Commerce reissued an “outperform” rating on shares of Franco-Nevada in a research report on Wednesday, February 4th. Finally, HC Wainwright restated a “buy” rating and issued a $305.00 price objective on shares of Franco-Nevada in a report on Wednesday, May 13th. Eleven investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $268.78.

Franco-Nevada Price Performance

FNV stock opened at $222.56 on Wednesday. Franco-Nevada has a 12 month low of $152.89 and a 12 month high of $285.67. The firm’s 50-day moving average is $244.61 and its 200 day moving average is $232.27. The company has a market capitalization of $42.92 billion, a PE ratio of 31.35, a P/E/G ratio of 1.95 and a beta of 0.34.

Franco-Nevada (NYSE:FNV) (TSE:FNV) last released its quarterly earnings data on Tuesday, May 12th. The basic materials company reported $2.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.09 by $0.29. The company had revenue of $650.70 million during the quarter, compared to analysts’ expectations of $634.43 million. Franco-Nevada had a net margin of 65.12% and a return on equity of 18.10%. The firm’s quarterly revenue was up 76.6% on a year-over-year basis. During the same period in the previous year, the company earned $1.07 EPS. Sell-side analysts forecast that Franco-Nevada will post 8.84 EPS for the current fiscal year.

Hedge Funds Weigh In On Franco-Nevada

Several institutional investors and hedge funds have recently added to or reduced their stakes in FNV. TD Waterhouse Canada Inc. grew its holdings in Franco-Nevada by 8.1% in the third quarter. TD Waterhouse Canada Inc. now owns 275,747 shares of the basic materials company’s stock worth $59,623,000 after purchasing an additional 20,664 shares during the last quarter. Gruss & Co. LLC acquired a new stake in shares of Franco-Nevada in the 3rd quarter worth $557,000. Legal & General Group Plc boosted its position in shares of Franco-Nevada by 6.0% in the 3rd quarter. Legal & General Group Plc now owns 986,672 shares of the basic materials company’s stock worth $219,665,000 after purchasing an additional 55,954 shares in the last quarter. TD Asset Management Inc grew its stake in Franco-Nevada by 0.9% during the 3rd quarter. TD Asset Management Inc now owns 2,030,684 shares of the basic materials company’s stock worth $452,095,000 after buying an additional 18,897 shares during the last quarter. Finally, Addenda Capital Inc. increased its position in Franco-Nevada by 88.1% during the 4th quarter. Addenda Capital Inc. now owns 203,643 shares of the basic materials company’s stock valued at $42,211,000 after buying an additional 95,405 shares in the last quarter. Hedge funds and other institutional investors own 77.06% of the company’s stock.

About Franco-Nevada

Franco-Nevada Corporation is a Toronto-based royalty and streaming company that specializes in securing and managing long-term interests in mining properties. The firm focuses primarily on precious metals, particularly gold, while also holding interests related to silver, copper, platinum-group metals and select base metals. Rather than operating mines directly, Franco-Nevada acquires royalty and streaming agreements that entitle it to a percentage of production or revenue from producing and developing assets in exchange for upfront or staged financing.

The company’s business model centers on providing capital to mining companies in return for a sustained share of production or metal revenue, which can reduce exposure to operating and capital cost risks typical of mine operators.