Franco-Nevada (NYSE:FNV) Lowered to Strong Sell Rating by Zacks Research

Key Points

• Zacks Research downgraded Franco-Nevada from “hold” to “strong sell,” making it the most negative recent analyst call highlighted in the article.
• Despite that downgrade, the overall analyst consensus remains Moderate Buy, with 11 Buy ratings, 3 Hold ratings, and 1 Sell rating; the average price target is $273.40.
• Franco-Nevada recently reported strong quarterly results, with EPS of $2.38 beating estimates and revenue rising 76.6% year over year, even as the stock traded at $202.88, below both its 50-day and 200-day moving averages.

Franco-Nevada (NYSE:FNV - Get Free Report) TSE: FNV was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued on Monday,Zacks.com reports.

Several other equities research analysts have also recently commented on FNV. TD Cowen upgraded shares of Franco-Nevada from a "hold" rating to a "buy" rating and lowered their price target for the stock from $292.00 to $291.00 in a research report on Wednesday, May 20th. Canaccord Genuity Group raised Franco-Nevada from a "hold" rating to a "buy" rating in a research note on Wednesday, April 29th. Royal Bank Of Canada reduced their price target on Franco-Nevada from $295.00 to $285.00 and set an "outperform" rating on the stock in a research report on Thursday, July 9th. Weiss Ratings cut Franco-Nevada from a "buy (b)" rating to a "buy (b-)" rating in a report on Monday, June 8th. Finally, TD Securities raised Franco-Nevada from a "hold" rating to a "buy" rating and set a $291.00 price target for the company in a research note on Wednesday, May 20th. Eleven analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $273.40.

Franco-Nevada Stock Up 1.2%

Shares of FNV opened at $202.88 on Monday. The stock's fifty day simple moving average is $220.49 and its 200-day simple moving average is $236.89. The firm has a market capitalization of $39.13 billion, a PE ratio of 28.57, a price-to-earnings-growth ratio of 1.69 and a beta of 0.36. Franco-Nevada has a 12-month low of $152.89 and a 12-month high of $285.67.

Franco-Nevada (NYSE:FNV - Get Free Report) TSE: FNV last announced its quarterly earnings data on Tuesday, May 12th. The basic materials company reported $2.38 EPS for the quarter, topping analysts' consensus estimates of $2.09 by $0.29. The firm had revenue of $650.70 million during the quarter, compared to analyst estimates of $634.43 million. Franco-Nevada had a return on equity of 18.10% and a net margin of 65.12%.The company's revenue was up 76.6% on a year-over-year basis. During the same period last year, the company earned $1.07 earnings per share. Analysts anticipate that Franco-Nevada will post 8.22 EPS for the current year.

Hedge Funds Weigh In On Franco-Nevada

Several institutional investors have recently modified their holdings of FNV. AQR Capital Management LLC acquired a new position in shares of Franco-Nevada in the first quarter valued at approximately $241,000. NewEdge Advisors LLC boosted its stake in Franco-Nevada by 16.7% in the 1st quarter. NewEdge Advisors LLC now owns 6,585 shares of the basic materials company's stock worth $1,038,000 after purchasing an additional 943 shares during the period. Intech Investment Management LLC increased its holdings in Franco-Nevada by 118.3% during the 1st quarter. Intech Investment Management LLC now owns 9,286 shares of the basic materials company's stock worth $1,460,000 after purchasing an additional 5,032 shares in the last quarter. Acadian Asset Management LLC increased its holdings in Franco-Nevada by 800.0% during the 1st quarter. Acadian Asset Management LLC now owns 2,700 shares of the basic materials company's stock worth $424,000 after purchasing an additional 2,400 shares in the last quarter. Finally, Marshall Wace LLP acquired a new stake in shares of Franco-Nevada in the 2nd quarter valued at about $1,477,000. 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.

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