Royal Gold stock rating upgraded to Outperform by BMO Capital on portfolio growth

Investing.com - BMO Capital has upgraded Royal Gold (NASDAQ:RGLD) from Market Perform to Outperform and raised its price target to $240.00 from $201.00. The precious metals company, with a market capitalization of $12.8 billion and impressive gross profit margins of 87%, has seen its stock surge 48.5% year-to-date. According to InvestingPro analysis, Royal Gold currently appears undervalued based on its Fair Value estimate.

The upgrade follows the closure of Royal Gold’s acquisition of Sandstorm and Horizon, which BMO Capital views as adding growth, diversification, and duration to Royal Gold’s portfolio.

BMO Capital noted that these acquisitions are expected to be accretive to net asset value (NAV) and medium-term earnings per share (EPS).

While BMO Capital was restricted from coverage, the firm observed that Royal Gold benefited from several positive developments, including a new stream on Kansanshi, growth at Fourmile, and both an extension and expansion at Mount Milligan.

BMO Capital also cited its recently raised gold price forecast as a contributing factor to the more bullish outlook on Royal Gold.

In other recent news, Royal Gold, Inc. has completed its acquisitions of Sandstorm Gold Ltd. and Horizon Copper Corp., expanding its portfolio of precious metal stream and royalty interests. The company issued approximately 18.6 million shares of common stock to Sandstorm shareholders and drew $450 million from its revolving credit facility to repay debt and fund cash considerations. Royal Gold reported selling approximately 48,000 gold equivalent ounces in the third quarter of 2025, which included 38,600 ounces of gold, 594,500 ounces of silver, and 1,200 tonnes of copper.

The company also announced that its shareholders approved the Sandstorm acquisition with 99.1% of votes cast in favor. Royal Gold has received all necessary regulatory approvals for the acquisitions under the Investment Canada Act, Canadian Competition Act, and South African Competition Act. Prior to the completion of the acquisitions, Royal Gold had filed a definitive proxy statement with the SEC for the Sandstorm transaction. The special meeting for the stockholders to vote on the issuance of shares was scheduled for October 9, 2025. These developments mark significant steps in Royal Gold’s strategic expansion efforts.

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