Bank of America Cuts Franco-Nevada (NYSE:FNV) Price Target to $238.00

Key Points

• Bank of America cut its price target on Franco-Nevada from $276 to $238 while keeping a neutral rating on the stock.
• Despite the lower target, the new estimate still implies about 16.9% upside from the previous close, and analyst sentiment remains generally positive with a Moderate Buy consensus.
• Franco-Nevada recently reported strong quarterly results, with EPS of $2.38 beating estimates and revenue rising 76.6% year over year; the stock opened at $203.57 and has a market cap of about $39.26 billion.

Franco-Nevada (NYSE:FNV - Get Free Report) TSE: FNV had its target price cut by investment analysts at Bank of America from $276.00 to $238.00 in a report released on Thursday,Benzinga reports. The brokerage currently has a "neutral" rating on the basic materials company's stock. Bank of America's price target points to a potential upside of 16.91% from the company's previous close.

Other equities analysts also recently issued reports about the company. National Bank Financial upgraded Franco-Nevada from a "sector perform" rating to an "outperform" rating in a research note on Wednesday, May 13th. Scotiabank raised their price target on Franco-Nevada from $286.00 to $290.00 and gave the stock a "sector perform" rating in a report on Thursday, May 14th. Jefferies Financial Group reduced their price objective on Franco-Nevada from $258.00 to $245.00 and set a "hold" rating for the company in a research report on Monday. TD Cowen upgraded Franco-Nevada from a "hold" rating to a "buy" rating and lowered their price objective for the stock from $292.00 to $291.00 in a research note on Wednesday, May 20th. Finally, Wall Street Zen downgraded Franco-Nevada from a "buy" rating to a "hold" rating in a research note on Monday, June 1st. Eleven analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, Franco-Nevada has an average rating of "Moderate Buy" and a consensus target price of $271.50.

Franco-Nevada Stock Performance

Shares of NYSE:FNV opened at $203.57 on Thursday. The stock has a market capitalization of $39.26 billion, a price-to-earnings ratio of 28.67, a price-to-earnings-growth ratio of 1.83 and a beta of 0.36. Franco-Nevada has a 1-year low of $152.89 and a 1-year high of $285.67. The company's fifty day moving average is $222.49 and its two-hundred day moving average is $237.18.

Franco-Nevada (NYSE:FNV - Get Free Report) TSE: FNV last posted its quarterly earnings results on Tuesday, May 12th. The basic materials company reported $2.38 EPS for the quarter, beating the consensus estimate of $2.09 by $0.29. Franco-Nevada had a net margin of 65.12% and a return on equity of 18.10%. The business had revenue of $650.70 million during the quarter, compared to analyst estimates of $634.43 million. During the same period in the previous year, the business posted $1.07 EPS. The company's quarterly revenue was up 76.6% on a year-over-year basis. Sell-side analysts expect that Franco-Nevada will post 8.85 EPS for the current fiscal year.

Institutional Investors Weigh In On Franco-Nevada

Hedge funds and other institutional investors have recently modified their holdings of the stock. Addenda Capital Inc. boosted its holdings in shares of Franco-Nevada by 88.1% in the fourth quarter. Addenda Capital Inc. now owns 203,643 shares of the basic materials company's stock valued at $42,211,000 after acquiring an additional 95,405 shares in the last quarter. Legal & General Group Plc boosted its stake in Franco-Nevada by 6.0% during the 3rd quarter. Legal & General Group Plc now owns 986,672 shares of the basic materials company's stock valued at $219,665,000 after purchasing an additional 55,954 shares in the last quarter. Crescent Grove Advisors LLC acquired a new position in shares of Franco-Nevada during the 4th quarter valued at $489,000. Scharf Investments LLC increased its position in shares of Franco-Nevada by 15.8% during the 4th quarter. Scharf Investments LLC now owns 692,209 shares of the basic materials company's stock valued at $143,484,000 after purchasing an additional 94,465 shares during the period. Finally, PKO Investment Management Joint Stock Co raised its stake in shares of Franco-Nevada by 11.4% in the 4th quarter. PKO Investment Management Joint Stock Co now owns 69,914 shares of the basic materials company's stock worth $14,519,000 after buying an additional 7,150 shares in the last quarter. 77.06% of the stock is currently owned by institutional investors.

Franco-Nevada Company Profile

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.

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