BMO Capital raises Gold Royalty stock price target to $3.50 on positive free cash flow

Published 07/08/2025, 13:34
BMO Capital raises Gold Royalty stock price target to $3.50 on positive free cash flow

Investing.com - BMO Capital has raised its price target on Gold Royalty Corp. (NYSE:GROY) to $3.50 from $3.00 while maintaining an Outperform rating on the stock. The company’s shares have shown remarkable momentum, surging 150% year-to-date and currently trading near their 52-week high of $3.11.

The company reported adjusted earnings per share in line with expectations and consensus, though cash flow before working capital came in slightly below BMO’s forecast. With a substantial gross profit margin of 96%, Gold Royalty had previously pre-released figures for Total (EPA:TTEF) Revenue, Land Agreement Proceeds, and Interest for the quarter.

A notable development in the second quarter of 2025 was Gold Royalty achieving positive free cash flow, marking an important financial milestone for the company.

Gold Royalty has reiterated its guidance for 2025 as well as its longer-term outlook, suggesting management remains confident in its projected performance trajectory.

The company will host a conference call on Friday at 10:00 a.m. ET to discuss its results and outlook in greater detail.

In other recent news, Gold Royalty Corp. has seen its stock price target raised by Scotiabank (TSX:BNS) to $2.50 from $2.25, while maintaining a Sector Outperform rating. This adjustment comes on the heels of the company’s capital markets day, where Gold Royalty outlined its five-year growth strategy. The company reiterated its forecast, expecting attributable gold equivalent ounces to reach between 23,000 and 28,000 ounces by 2029. Additionally, Gold Royalty confirmed it is on track to generate free cash flow by 2025, marking a significant milestone for the firm. In another development, H.C. Wainwright has reiterated its Buy rating and $5.75 price target for Gold Royalty, following a company presentation. During this presentation, CEO David Garofalo provided a strategic overview, supported by updates from other management team members and representatives from firms in Gold Royalty’s portfolio. These recent developments reflect continued confidence in Gold Royalty’s strategic direction and growth potential.

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