Gold Royalty raised at BMO, as Vares streaming deal adds copper cash flow (NYSE:GROY)
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Gold Royalty (NYSE:GROY) is upgraded to Speculative Outperform from Market Perform with a $25 price target, raised from $22, at BMO Capital, saying the company continues to execute on new transactions, enhance its shareholder base, undertake business combinations and diversify its portfolio.
While the majority of Gold Royalty’s (GROY) portfolio currently is non-producing, BMO’s Rene Cartier still sees a potential opportunity for an improved multiple as the management team executes its strategy.
Despite equity dilution from Gold Royalty’s (GROY) recent bought deal offering, Cartier views the internal rate of return on the acquisition of the Vares copper stream as “reasonable,” and with the near-term cash flow to support company deleveraging efforts, and help to bridge the gap to other portfolio assets either coming online, or more materially contributing.
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