Bank of America Has Lowered Expectations for Franco-Nevada (NYSE:FNV) Stock Price

Franco-Nevada (NYSE:FNV) (TSE:FNV) had its price target reduced by Bank of America from $276.00 to $238.00 in a note issued to investors on Thursday,Benzinga reports. The firm presently has a “neutral” rating on the basic materials company’s stock. Bank of America‘s price objective points to a potential upside of 16.91% from the company’s previous close.

Other equities research analysts have also issued reports about the company. National Bank Financial raised Franco-Nevada from a “sector perform” rating to an “outperform” rating in a research report on Wednesday, May 13th. Jefferies Financial Group dropped their price target on Franco-Nevada from $258.00 to $245.00 and set a “hold” rating on the stock in a research note on Monday. TD Cowen upgraded Franco-Nevada from a “hold” rating to a “buy” rating and cut their price objective for the stock from $292.00 to $291.00 in a report on Wednesday, May 20th. Wall Street Zen lowered shares of Franco-Nevada from a “buy” rating to a “hold” rating in a research note on Monday, June 1st. Finally, Weiss Ratings cut shares of Franco-Nevada from a “buy (b)” rating to a “buy (b-)” rating in a report on Monday, June 8th. Eleven equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target 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 PEG 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 has a 50 day moving average price of $222.49 and a 200 day moving average price of $237.18.

Franco-Nevada (NYSE:FNV) (TSE:FNV) last posted its quarterly earnings results 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. Franco-Nevada had a return on equity of 18.10% and a net margin of 65.12%.The company had revenue of $650.70 million for the quarter, compared to analysts’ expectations of $634.43 million. During the same quarter in the prior year, the company earned $1.07 earnings per share. The firm’s revenue was up 76.6% on a year-over-year basis. On average, sell-side analysts expect that Franco-Nevada will post 8.85 EPS for the current fiscal year.

Institutional Trading of Franco-Nevada

Several hedge funds and other institutional investors have recently modified their holdings of the company. GAMMA Investing LLC boosted its position in Franco-Nevada by 112.3% during the fourth quarter. GAMMA Investing LLC now owns 121 shares of the basic materials company’s stock valued at $25,000 after purchasing an additional 64 shares during the last quarter. Transamerica Financial Advisors LLC acquired a new position in Franco-Nevada in the 4th quarter worth about $25,000. Burkett Financial Services LLC purchased a new stake in shares of Franco-Nevada during the 3rd quarter worth about $28,000. Private Trust Co. NA purchased a new stake in shares of Franco-Nevada during the 4th quarter worth about $29,000. Finally, Ascentis Independent Advisors purchased a new stake in shares of Franco-Nevada during the 1st quarter worth about $39,000. 77.06% of the stock is currently owned by hedge funds and other 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.