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Investing.com - Raymond (NSE:RYMD) James raised its price target on Osisko Gold Royalties (NYSE:OR) to $29.00 from $27.50 while maintaining an Outperform rating on the stock. The company’s stock has shown remarkable strength, delivering a 52% year-to-date return and currently trading near its 52-week high of $28.22. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.
The investment firm cited Osisko’s high-margin business model, growth potential, flexible balance sheet, and diversified portfolio of development and exploration companies with low jurisdictional risk as factors supporting its positive outlook. InvestingPro data confirms this assessment, showing an impressive 96.5% gross profit margin and a "GREAT" financial health score. The company maintains a strong balance sheet with a current ratio of 4.98.
Raymond James highlighted a significant development regarding Osisko Development Corp. (ODV), in which Osisko Gold Royalties owns approximately 24% equity stake and holds a 5% net smelter return (NSR) royalty on the Cariboo Gold Project.
ODV has secured a senior secured project loan credit facility totaling US$450 million from funds advised by Appian (NASDAQ:APPN) for the development and construction of its permitted, 100%-owned Cariboo Gold Project in British Columbia, Canada.
Raymond James noted that while the Cariboo project is not included in Osisko Gold Royalties’ five-year growth outlook (to 2029) of 40% in gold equivalent ounces (GEOs), it could become a meaningful contributor to the company’s GEOs in the future.
In other recent news, OR Royalties Inc. reported record revenue of $60.4 million for the second quarter of 2025, driven by 19,700 attributable gold equivalent ounces. The company maintained a strong cash margin of approximately $57.8 million, representing 95.8% of its revenue. OR Royalties has also increased its revolving credit facility to $650 million, with an option to extend it to $850 million, reflecting confidence in its growth prospects. Meanwhile, the company has acquired a 100% silver stream on the South Railroad project in Nevada, operated by Orla Mining Ltd. Additionally, OR Royalties owns shares in MAC Copper Limited, which is set to be acquired by Harmony (JO:HARJ) Gold Mining Company Limited, potentially strengthening OR Royalties’ financial position. In a separate development, BMO Capital raised the price target for Osisko Gold Royalties to Cdn$33.00, highlighting the company’s strategic moves, such as the silver stream acquisition. Osisko Gold Royalties also announced a 20% increase in its quarterly dividend, with US$0.055 per common share to be paid in July 2025. These developments underscore the company’s efforts to enhance its portfolio and financial flexibility.
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