Franco-Nevada (NYSE:FNV) Stock Price Expected to Rise, Scotiabank Analyst Says

Franco-Nevada (NYSE:FNV) (TSE:FNV) had its price objective boosted by Scotiabank from $283.00 to $286.00 in a research note issued to investors on Monday,Benzinga reports. The brokerage currently has a “sector perform” rating on the basic materials company’s stock. Scotiabank’s price objective would indicate a potential upside of 13.40% from the stock’s current price.

A number of other brokerages have also commented on FNV. Royal Bank Of Canada upgraded shares of Franco-Nevada from a “sector perform” rating to an “outperform” rating and raised their price objective for the stock from $225.00 to $250.00 in a report on Wednesday, December 10th. Jefferies Financial Group reiterated a “hold” rating and set a $228.00 target price on shares of Franco-Nevada in a report on Sunday, December 7th. Weiss Ratings downgraded Franco-Nevada from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, March 6th. Zacks Research upgraded Franco-Nevada from a “hold” rating to a “strong-buy” rating in a report on Friday, February 27th. Finally, HC Wainwright increased their price objective on Franco-Nevada from $285.00 to $305.00 and gave the stock a “buy” rating in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and seven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $257.25.

Franco-Nevada Trading Up 0.1%

Shares of NYSE:FNV traded up $0.33 during trading on Monday, hitting $252.20. 237,082 shares of the company’s stock traded hands, compared to its average volume of 902,309. The company has a 50-day moving average price of $250.76 and a 200-day moving average price of $219.78. Franco-Nevada has a 52 week low of $140.03 and a 52 week high of $285.67. The company has a market cap of $48.62 billion, a price-to-earnings ratio of 43.64, a price-to-earnings-growth ratio of 3.65 and a beta of 0.45.

Franco-Nevada (NYSE:FNV) (TSE:FNV) last posted its earnings results on Tuesday, March 10th. The basic materials company reported $1.85 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.67 by $0.18. Franco-Nevada had a return on equity of 15.62% and a net margin of 61.01%.The business had revenue of $597.30 million during the quarter, compared to analysts’ expectations of $542.02 million. During the same period in the prior year, the business earned $0.95 EPS. Franco-Nevada’s revenue for the quarter was up 86.1% compared to the same quarter last year. On average, analysts predict that Franco-Nevada will post 3.09 earnings per share for the current fiscal year.

Institutional Trading of Franco-Nevada

Several institutional investors and hedge funds have recently bought and sold shares of FNV. Vanguard Group Inc. grew its stake in Franco-Nevada by 1.4% in the fourth quarter. Vanguard Group Inc. now owns 8,330,234 shares of the basic materials company’s stock valued at $1,726,741,000 after purchasing an additional 113,916 shares in the last quarter. Van ECK Associates Corp grew its stake in shares of Franco-Nevada by 12.8% in the fourth quarter. Van ECK Associates Corp now owns 7,441,133 shares of the basic materials company’s stock valued at $1,542,402,000 after buying an additional 842,132 shares in the last quarter. Bank of Montreal Can increased its holdings in Franco-Nevada by 8.9% during the third quarter. Bank of Montreal Can now owns 5,560,980 shares of the basic materials company’s stock worth $1,237,510,000 after buying an additional 454,175 shares during the last quarter. First Eagle Investment Management LLC raised its position in Franco-Nevada by 26.5% during the fourth quarter. First Eagle Investment Management LLC now owns 5,123,444 shares of the basic materials company’s stock worth $1,062,037,000 after acquiring an additional 1,074,257 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted its stake in Franco-Nevada by 35.2% in the second quarter. Arrowstreet Capital Limited Partnership now owns 3,220,029 shares of the basic materials company’s stock valued at $528,289,000 after acquiring an additional 838,853 shares during the last quarter. 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.