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On Tuesday, H.C. Wainwright analyst raised the price target for Franco-Nev Corp (NYSE:FNV) shares to $165 from $155, while maintaining a Buy rating on the stock. The firm recognized Franco-Nev’s revenue of $1.1 billion for the year, which generated a net income of $552.1 million, or $2.87 per share. These results marked a significant recovery from the previous year’s revenue of $1.2 billion and a net loss of $466.4 million, or ($2.43) per share. According to InvestingPro data, the stock has shown strong momentum, delivering a 27.78% return over the past year and currently trading near its 52-week high of $148.02.
The 9% year-over-year decline in revenue was largely due to the lack of production from the Cobre Panama site. However, management indicated that, excluding this factor, revenue would have increased by 15% year-over-year, considering the expected contribution from the site had the shutdown not occurred. Despite these challenges, InvestingPro analysis shows the company maintains impressive gross profit margins of 87.37%, demonstrating strong operational efficiency. The substantial improvement in earnings per share (EPS) was also noted, as the previous period included a $1.2 billion impairment loss related to the Cobre Panama shutdown.
Looking forward, analysts at H.C. Wainwright are optimistic about Franco-Nev’s prospects, expecting additional revenue streams from various assets, such as Yanacocha, Western Limb, and possibly the Porcupine Complex. These developments are anticipated to drive revenue and earnings growth for the company in 2025. InvestingPro subscribers can access detailed analysis showing that net income is expected to grow this year, with analysts forecasting EPS of $3.23 for 2024.
The firm also highlighted the robustness of Franco-Nev’s balance sheet, which boasts approximately $1.5 billion in cash and cash equivalents and is free of debt. The analyst reiterated a Buy rating for the stock, emphasizing the company’s potential for growth and a strong financial position. The new price target of $165, up from the previous target of $155, reflects this positive outlook. InvestingPro data reveals the company has maintained dividend payments for 18 consecutive years with an 11.76% dividend growth rate, demonstrating consistent shareholder returns. For comprehensive analysis and additional insights, including 13 more ProTips and detailed financial metrics, explore Franco-Nev’s complete profile on InvestingPro.
In other recent news, Franco-Nevada Corporation reported its fourth-quarter 2024 financial results, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $0.95, which exceeded the projected $0.92, while its revenue reached $321 million, beating the forecasted $309.18 million. Franco-Nevada’s adjusted EBITDA rose by 9%, and the adjusted net income surged by 65% compared to the previous year. The company attributes its strong performance to strategic acquisitions and favorable market conditions, particularly the rise in gold prices. Additionally, Franco-Nevada has no debt and has increased its dividends for the 18th consecutive time. The company plans to expand its energy assets and pursue new acquisitions, projecting a 7% increase in total gold equivalent ounces (geo) sales for 2025 and a 25% revenue growth. Analyst discussions during the earnings call highlighted Franco-Nevada’s focus on precious metals acquisitions and project financing opportunities for the upcoming year.
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