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On Friday, BMO Capital Markets initiated coverage on Sprott Inc . (TSX:SII:CN) (OTC: SPOXF (OTC:SII)), a distinguished alternative asset manager specializing in precious metals, with an Outperform rating and set a price target of C$75.00. The firm highlighted Sprott’s consistent performance and its ability to generate significant free cash flow.
Sprott Inc. has been recognized for its stable track record, consistently achieving mid-single-digit net flows, even through varying precious metals cycles. The company’s scalable business model was particularly noted for its capacity to support strong valuations, which often exceed 20 times earnings.
The positive outlook is further reinforced by Sprott’s potential for delivering a long-term low-to-mid-teens annual return on investment. BMO Capital Markets’ coverage begins with confidence in Sprott’s future financial performance and the company’s strategic position within the alternative asset management space.
The Outperform rating indicates that BMO Capital Markets anticipates Sprott Inc. to outperform the average total return of the stocks covered by the analyst in the sector over the next 12 months. The price target of C$75.00 reflects this optimism and is a significant aspect of the firm’s coverage initiation.
Sprott Inc.’s financial health, driven by its business model, positions it well for future growth and profitability. The company’s focus on precious metals and alternative assets sets it apart in the investment management industry, aligning with BMO Capital Markets’ positive expectations revealed in their recent analysis.
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