Deutsche Bank Upgrades Franco Nev Corp (FNV) to Hold

September 9, 2016 7:09 AM EDT
Get Alerts FNV Hot Sheet
Price: $63.58 -1.97%

Rating Summary:
    2 Buy, 8 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 17 | Down: 27 | New: 7
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Deutsche Bank upgraded Franco Nev Corp (NYSE: FNV) from Sell to Hold with a price target of $74.00 (from $62.00).

Analyst Jorge Beristain said, "We have revised our Franco-Nevada valuation following our initiation of peer Silver Wheaton (Buy, PT $37/sh, $29.25/sh). Royalty/streaming companies are sensitive to interest rates, and we believe they will remain lower-for-longer globally, combined with Franco-Nevada's proven low cost of equity, we are now applying 4.5% (previously 5.5%) as a Weighted Average Cost of Capital (WACC). This is lower than Silver Wheaton (5%) to recognize Franco-Nevada's greater diversity of assets and commodities, and royalty/stream split. We like Franco-Nevada's business model but believe the equity is fairly priced on NAV and is trading on 27x EV/2017E EBITDA; Upgrade to Hold."

For an analyst ratings summary and ratings history on Franco Nev Corp click here. For more ratings news on Franco Nev Corp click here.

Shares of Franco Nev Corp closed at $74.88 yesterday.

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