Royal Gold stock rating upgraded to Strong Buy by CFRA on growth outlook

Investing.com - CFRA upgraded Royal Gold (NASDAQ:RGLD) from Buy to Strong Buy on Monday, while raising its price target to $231.00 from $225.00, citing the company’s transformational growth trajectory. The stock, currently trading at $169.77, has already delivered an impressive 29.25% return year-to-date.

The upgrade follows Royal Gold’s announced acquisitions of Sandstorm Gold (NYSE:SAND) ($3.5 billion), Horizon Copper ($196 million), and the $1 billion Kansanshi gold stream acquisition, which CFRA believes positions the company as a top-tier growth player in the streaming sector. InvestingPro data shows the company maintains impressive gross profit margins of 87.34%, highlighting its operational efficiency.

CFRA raised its earnings per share estimates for Royal Gold to $7.74 for 2025 and $8.90 for 2026, representing increases of $0.79 and $0.56 respectively from previous forecasts.

The research firm highlighted Royal Gold’s portfolio expansion to 393 total interests, which provides exceptional diversification while maintaining a 78% gold revenue mix, preserving the company’s precious metals focus.

CFRA considers Royal Gold shares undervalued given the company’s top-tier margin profile, debt-free balance sheet with $1.25 billion in liquidity, and robust organic growth pipeline from 47 development-stage assets.

In other recent news, Royal Gold Inc. released its financial results for the second quarter of 2025, revealing a mixed performance. The company reported earnings per share (EPS) of $1.81, which exceeded analyst expectations of $1.74. However, Royal Gold’s revenue for the quarter was $209.6 million, falling short of the anticipated $226.31 million. Despite the revenue miss, the earnings beat was a notable highlight for the company. Investors and analysts are closely monitoring these developments, as they provide insights into Royal Gold’s financial health and operational performance. The earnings report is a key factor for investors assessing the company’s current position and future prospects. These recent developments are crucial for understanding Royal Gold’s market standing and financial trajectory.

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