Franco-Nevada Corporation (NYSE:FNV) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Franco-Nevada, with 11 buy ratings and four holds among 15 brokerages. The average 12-month price target is $273.40.
• Second-quarter revenue rose 57.3% year over year to $580.9 million, but earnings of $1.81 per share and revenue both missed analyst expectations.
• Franco-Nevada declared a quarterly dividend of $0.44 per share, or $1.76 annualized, payable September 24 to shareholders of record September 10.

Shares of Franco-Nevada Corporation (NYSE:FNV - Get Free Report) TSE: FNV have earned an average rating of "Moderate Buy" from the fifteen brokerages that are covering the company, MarketBeat reports. Four equities research analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company. The average 1-year price target among brokerages that have issued a report on the stock in the last year is $273.40.

Several research analysts have commented on FNV shares. Weiss Ratings downgraded Franco-Nevada from a "buy (b)" rating to a "buy (b-)" rating in a research note on Monday, June 8th. TD Cowen raised Franco-Nevada from a "hold" rating to a "buy" rating and cut their target price for the stock from $292.00 to $291.00 in a report on Wednesday, May 20th. Scotiabank reduced their price objective on shares of Franco-Nevada from $290.00 to $274.00 and set a "sector perform" rating on the stock in a research note on Tuesday, July 14th. National Bank Financial upgraded Franco-Nevada from a "sector perform" rating to an "outperform" rating in a report on Wednesday, May 13th. Finally, Bank of America reduced their target price on Franco-Nevada from $276.00 to $238.00 and set a "neutral" rating for the company in a research note on Thursday, July 9th.

Franco-Nevada Stock Performance

NYSE:FNV opened at $231.82 on Friday. The company has a market cap of $44.71 billion, a price-to-earnings ratio of 30.30, a PEG ratio of 1.99 and a beta of 0.35. Franco-Nevada has a fifty-two week low of $173.39 and a fifty-two week high of $285.67. The stock has a fifty day moving average price of $215.37 and a 200-day moving average price of $235.32.

Franco-Nevada (NYSE:FNV - Get Free Report) TSE: FNV last issued its earnings results on Tuesday, August 11th. The basic materials company reported $1.81 EPS for the quarter, missing the consensus estimate of $1.95 by ($0.14). Franco-Nevada had a net margin of 63.79% and a return on equity of 18.98%. The firm had revenue of $580.90 million during the quarter, compared to analyst estimates of $616.66 million. During the same quarter in the previous year, the firm posted $1.24 earnings per share. Franco-Nevada's quarterly revenue was up 57.3% compared to the same quarter last year. Research analysts predict that Franco-Nevada will post 8.23 EPS for the current fiscal year.

Franco-Nevada Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, September 10th will be issued a dividend of $0.44 per share. The ex-dividend date is Thursday, September 10th. This represents a $1.76 annualized dividend and a yield of 0.8%. Franco-Nevada's payout ratio is 23.01%.

Franco-Nevada News Summary

Here are the key news stories impacting Franco-Nevada this week:

• Positive Sentiment: Second-quarter revenue increased 57.3% year over year to approximately $580.9 million, supported by higher precious-metals and oil prices. Gold’s continued rally could further benefit Franco-Nevada’s royalty and streaming portfolio. Franco-Nevada Q2 Earnings Miss Estimates, Revenues Soar 57% Y/Y
• Positive Sentiment: MarketBeat noted that rising gold prices, analyst price targets and technical indicators point to potential additional upside for FNV despite the quarterly miss. Franco-Nevada Earnings: Gold Is Rallying, But Does the Stock Even Care?
• Positive Sentiment: Franco-Nevada declared a quarterly dividend of $0.44 per share, payable September 24 to shareholders of record September 10. The dividend provides continued income support, although the indicated yield is approximately 0.7%.
• Neutral Sentiment: Zacks Research upgraded Franco-Nevada’s rating from “strong sell” to “hold,” indicating a less negative view but not an outright bullish recommendation. Zacks.com
• Negative Sentiment: Second-quarter adjusted earnings per share came in at $1.81, below the $1.95 consensus estimate, while revenue also missed expectations of approximately $616.7 million. Contracting margins added to investor concerns despite the sharp year-over-year growth. Franco-Nevada Q2 Earnings Miss Estimates, Revenues Soar 57% Y/Y

Institutional Investors Weigh In On Franco-Nevada

A number of hedge funds have recently modified their holdings of FNV. Transamerica Financial Advisors LLC bought a new stake in Franco-Nevada during the fourth quarter valued at $25,000. Private Trust Co. NA bought a new stake in shares of Franco-Nevada in the fourth quarter worth about $29,000. Smartleaf Asset Management LLC raised its holdings in shares of Franco-Nevada by 600.0% during the second quarter. Smartleaf Asset Management LLC now owns 196 shares of the basic materials company's stock valued at $32,000 after acquiring an additional 168 shares in the last quarter. Navalign LLC purchased a new stake in shares of Franco-Nevada in the 4th quarter worth about $34,000. Finally, Global Retirement Partners LLC purchased a new stake in Franco-Nevada in the second quarter worth about $35,000. Institutional investors own 77.06% of the company's stock.

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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