Altius Minerals stock target raised to Cdn$24 at BMO Capital

On Wednesday, BMO Capital Markets adjusted its outlook on Altius Minerals Corp (ALS:CN) (OTC: ATUSF), with analyst Rene Cartier increasing the price target to Cdn$24.00, up from the previous Cdn$23.00, while maintaining a Market Perform rating on the stock. The revision follows Altius’s report of its fourth-quarter royalty revenue, which did not meet the firm’s expectations. The company, currently valued at $873.2 million, has shown impressive momentum with a 40.84% return over the past year and trades near its 52-week high of $20.20. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.

The company’s potash royalty revenue exceeded forecasts due to a positive adjustment in the quarter that had not been factored into BMO Capital’s estimates. However, revenue from base and battery metals fell significantly short, primarily because of the timing of sales. Revenue from renewables also did not reach the anticipated figures. Despite these mixed results, InvestingPro data reveals the company maintains impressive gross profit margins of 89.25%, though it trades at a relatively high P/E ratio of 92.8. InvestingPro subscribers have access to 13 additional key insights about Altius Minerals.

Despite the lower-than-expected royalty revenue for Q4/24, BMO Capital sees enough potential in Altius Minerals to warrant a slight increase in the price target. Cartier noted that the adjustment to Cdn$24.00 from Cdn$23.00 is a result of rounding.

Investors and interested parties should note that Altius Minerals is set to publish its complete financial results for the fourth quarter of 2024 after the market closes on March 11. The updated price target reflects the latest financial data and BMO Capital’s analysis of the company’s performance and market position.

In other recent news, Altius Minerals witnessed a decrease in Q3 revenue and net earnings, with royalty revenue falling to $16.6 million from $17.8 million in the same quarter of the previous year. Net earnings also saw a modest decline to $3.2 million. Despite these declines, Altius Minerals announced a quarterly dividend of $0.09 per share.

Scotiabank (TSX:BNS) upgraded Altius Minerals’ stock based on several factors, including the advancement of the Kami Fe project and the expected sale of the Silicon Au royalty in Nevada. The company’s credit facility was amended, extending the term to August 2028, with a total available credit of $225 million. Altius Renewable Royalties is undergoing a take-private transaction by Northampton Capital.

These recent developments underscore the company’s diverse resource portfolio, with significant valuation tied to potash, silicon, iron ore, and renewable resources. Altius Minerals is focusing on organic growth from ongoing projects in base and battery metals, while anticipating increased global demand in potash. The outcome of an ongoing arbitration with AngloGold Ashanti remains significant for Altius Minerals’ future strategic decisions.

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