Gold Royalty stock price target raised to $5.75 at H.C. Wainwright

Published 05/02/2025, 13:32
Gold Royalty stock price target raised to $5.75 at H.C. Wainwright

On Wednesday, H.C. Wainwright analysts increased their price target on Gold Royalty Corp. (NYSE:GROY) to $5.75, up from the previous $5.50, while maintaining a Buy rating on the company’s shares. Currently trading at $1.35, the stock has shown strong momentum with an 8.9% gain over the past week. According to InvestingPro data, analyst targets range from $2.10 to $5.50, suggesting significant upside potential. This adjustment follows Gold Royalty’s announcement of preliminary revenue for 2024, which was reported on January 29, 2025.

Gold Royalty disclosed preliminary revenue figures of $10.1 million based on 5,462 Gold Equivalent Ounces (GEOs) for the year 2024. The company’s total revenue, including land agreement proceeds and interest revenue, reached $12.8 million. This represents substantial growth, with InvestingPro analysis showing a remarkable 197% revenue increase over the last twelve months. Notably, during the second quarter of 2024, Gold Royalty acquired a copper stream on the Vares Silver Project in Bosnia and Herzegovina, with the transaction valued at $50 million.

Looking forward, H.C. Wainwright anticipates further topline growth for Gold Royalty throughout 2025. This expectation is supported by the continued development of the Côté royalty and the Vares stream. The firm’s analysts believe that Gold Royalty is well-positioned to expand its asset base, especially considering the current strength in gold pricing and the recent favorable trends in mergers and acquisitions within the industry. InvestingPro analysis indicates the company maintains a "GOOD" overall financial health score, with particularly strong performance in relative value metrics. Subscribers can access 7 additional ProTips and comprehensive financial analysis through the Pro Research Report.

In their commentary, H.C. Wainwright analysts expressed a positive outlook for Gold Royalty, stating, "We expect additional topline growth throughout 2025 as the Côté royalty and Vares stream continue ramping up. In our view, GROY remains well-positioned to further capitalize and grow its asset base given continued strength in gold pricing amid recent favorable trends in M&A. Reiterate Buy rating and increase PT to $5.75 from $5.50."

In other recent news, Gold Royalty Corp. has reported a notable increase in its year-to-date revenue, reaching $9 million, a 130% rise from the previous year. This announcement was made during its Third Quarter 2024 Earnings Call, where the company’s CEO, David Garofalo, pointed out a significant upturn with record revenues and a positive net income. This income is largely credited to a $5.9 million deferred tax asset from an internal reorganization. Gold Royalty Corp. is also projecting total revenue between $13 million to $14 million for the full year, supported by growth from the Côté Gold Mine and initial revenue from the Vares Mine.

In recent developments, the company has made significant investments that have increased its resource base to over 130 million ounces. The company also maintains a portfolio of over 240 royalties, with a focus on debt reduction and disciplined capital allocation. Despite analysts’ anticipation of a slight downturn in cash flow projections for 2029, the company remains optimistic about its growth prospects.

Gold Royalty Corp.’s positive outlook is backed by considerable organic growth in its resource estimates, with total resources now exceeding 10.5 million ounces. Despite a cautious sentiment regarding long-term cash flow projections, the overall tone from the company remains confident, emphasizing the positive trajectory of the company’s financials and operations.

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