Update shared on 01 Nov 2025
Fair value Increased 3.89%Analysts have increased their price target for Royal Gold from approximately $239 to $248 per share, citing recent acquisitions, strong commodity markets, and expectations for higher revenue growth as the main drivers for the upward revision.
Analyst Commentary
Bullish analysts have highlighted several factors driving upward revisions to Royal Gold's price target and outlook. Their commentary reflects confidence in the company's growth trajectory and its ability to capitalize on favorable market dynamics.
Bullish Takeaways- Recent strategic acquisitions, including the completion of deals with Sandstorm Gold and Horizon Copper, are expected to enhance growth, diversification, and the longevity of Royal Gold's portfolio.
- Rising precious metals prices, supported by ongoing global trade and geopolitical uncertainty, are poised to benefit Royal Gold's revenue and valuation.
- Medium-term earnings per share are projected to improve, as recent deals are considered accretive to net asset value and earnings potential.
- Continued momentum in capital returns and corporate mergers and acquisitions may provide additional opportunities for valuation expansion and execution on long-term growth strategies.
- Analysts note that recent upward revisions in price targets may already reflect much of the anticipated growth. This could limit near-term upside if execution does not meet expectations.
- Accretive acquisitions carry integration risks, and the actual impact on financial results will depend on effective management and realization of projected synergies.
- Future performance remains sensitive to fluctuations in precious metals pricing and ongoing volatility in commodity markets. These factors can impact revenue consistency.
What's in the News
- The White House announced it will clarify that gold bar imports are not subject to recently announced tariffs. This addresses trader concerns about potential duties on the sector (Bloomberg).
- Royal Gold has scheduled a special shareholders meeting for October 9, 2025, to discuss and vote on the approval of share issuance and the potential adjournment or postponement of the meeting.
Valuation Changes
- Fair Value Estimate has increased from $238.63 to $247.91, reflecting a moderate upward adjustment.
- Discount Rate has risen slightly from 7.46% to 7.51%, indicating a minor increase in risk assessment.
- Revenue Growth projections have improved significantly, rising from 25.93% to 38.52%.
- Net Profit Margin has declined slightly from 60.77% to 58.87%.
- Future P/E ratio has decreased from 20.34x to 16.41x, suggesting expectations of stronger earnings relative to price.
Disclaimer
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