GOLD - Franco-Nevada: Why I Disagree With Wall Street

2024-06-11 15:03:23 ET

Summary

• Franco-Nevada Corporation stock is highly rated by Wall Street analysts with a buy rating.
• Gold prices have risen, but Franco-Nevada stock has not performed well compared to gold prices or gold miners as a group.
• The company's unique business model shields it from rising operating expenses.
• But the model also creates its own risks, with the ongoing situation surrounding its partner First Quantum Minerals as a notable example.

FNV stock is loved by Wall Street

As gold prices stay at elevated levels, Franco-Nevada Corporation ( FNV ) is loved by Wall Street analysts (and Seeking Alpha authors too). As illustrated by the chart below, both Seeking Alpha writers and Wall Street analysts have a very strong rating on the stock. A total of 10 Wall Street analysts rated the stock in the last 90 days as either buy or strong buy, out of a total of 17 analysts who covered it. The overall score from Wall Street on the stock is a strong 3.88....

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