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Investing.com - TD Securities downgraded Sprott Inc . (TSX:SII) (OTC:SPOXF (OTC:SII)) from Buy to Hold while raising its price target to C$100.00 from C$84.00.
The downgrade follows Sprott’s significant share price appreciation of 71% year-to-date, according to TD Securities analyst Graham Ryding.
TD Securities noted that Sprott has experienced material assets under management (AUM) growth, which has led to an improved earnings outlook for the company.
Despite the positive business performance, the firm believes Sprott’s valuation has moved considerably higher during this period of strong share price performance.
The current valuation represents a premium relative to both Sprott’s historical valuation levels and alternative asset manager comparables, suggesting limited upside potential from current price levels.
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