Update shared on 30 Nov 2025
Fair value Increased 0.62%The analyst consensus price target for Franco-Nevada has edged higher from approximately $341.26 to $343.38. Analysts cite ongoing strong commodity prices, updated royalty valuations, and continued optimism for key asset contributions as supporting factors behind the modest increase.
Analyst Commentary
Recent Street research reflects a mix of optimism and caution regarding Franco-Nevada's prospects. The company's price targets have experienced both upward and downward revisions amid changing market dynamics, earnings performance, and shifts in commodity prices.
Bullish Takeaways- Bullish analysts are increasing their price targets in response to consistently strong commodity prices and the resilience shown in the precious metals sector. This suggests that the company's cash-flowing royalty assets deliver robust value.
- Recent upgrades to Buy indicate confidence in Franco-Nevada's near-term growth, especially given anticipated contributions from new assets and project ramp-ups, which align with the company’s production guidance.
- There is growing recognition of upside potential related to significant asset positions, such as Cobre Panama. Analysts suggest that current valuations may not fully reflect prospective growth opportunities.
- Despite market volatility, some analysts remain positive about Franco-Nevada’s exposure to copper, aluminum, and gold. They note a favorable outlook for these metals that supports future cash flows and potential capital returns.
- Bearish analysts have lowered price targets or adopted a more cautious stance due to a recent pullback in gold prices. This has led to increased market volatility and a rollover in investor sentiment.
- There are ongoing concerns about unstable investor sentiment in the face of global economic and geopolitical uncertainty, which could impact the company’s valuation multiples.
- Execution risks remain present, with some analysts highlighting potential headwinds for capital returns or M&A activity if market sentiment weakens further.
What's in the News
- Franco-Nevada has narrowed its 2025 sales guidance. Expected Precious Metal GEO sales are now projected to be between 420,000 and 440,000 GEO, compared to the initial range of 385,000 to 425,000 GEO. (Key Developments)
- Total GEO sales for 2025 are now anticipated to be between 495,000 and 525,000 GEO, with a slight adjustment to the lower end from the earlier guidance of 465,000 to 525,000 GEO. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target (Fair Value) has risen slightly, moving from CA$341.26 to CA$343.38.
- Discount Rate has increased marginally from 7.04% to 7.08%.
- Revenue Growth projection is effectively unchanged and remains at approximately 7.60%.
- Net Profit Margin remains stable at about 65.98%.
- Future P/E Ratio has risen modestly from 45.74x to 46.26x.
Disclaimer
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