Street Calls of the Week
Investing.com - Raymond James initiated coverage on Veramet Royalties Corp (TSXV:VMET) with an Outperform rating and a price target of C$14.50.
The research firm highlighted that royalty companies like VMET offer investors exposure to precious metals prices while reducing downside risk through limited exposure to operating and capital costs.
VMET’s portfolio consists of over 25 royalties and streams, including 8 producing assets, with approximately 75% focused on precious metals and 25% on base metals according to the firm’s net asset value calculation.
Raymond James noted VMET’s growth potential, projecting a 100% increase in gold equivalent ounces (GEOs) in 2026, primarily driven by two strategic acquisitions made in 2025, with many key assets having reserve/resource lives exceeding 10 years.
The firm acknowledged some challenges, including VMET’s higher debt compared to competitors, lower share liquidity due to concentrated ownership, and lack of dividend, but emphasized the company is pursuing a U.S. listing and maintains a high-margin business model with both near-term and longer-term growth potential.
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