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    What Franco-Nevada (TSX:FNV)'s RBC Upgrade and Cobre Panama Upside Signal Means For Shareholders

    Simply Wall St·12/11/2025 23:20:46
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    • In recent days, RBC Capital upgraded Franco-Nevada to Outperform, citing the company's attractive valuation, growth prospects including Cobre Panama upside in 2026, and resilience versus traditional miners.
    • This upgrade follows Franco-Nevada’s stronger-than-expected third-quarter earnings, which reinforced perceptions of robust operations and financial strength in its royalty-focused model.
    • Building on this upgrade and the emphasis on Cobre Panama’s 2026 potential, we’ll explore how these developments reshape Franco-Nevada’s investment narrative.

    Find companies with promising cash flow potential yet trading below their fair value.

    Franco-Nevada Investment Narrative Recap

    To own Franco Nevada, you need to believe in the durability of its gold focused royalty model and its ability to convert high commodity prices into resilient cash flow without operating mines directly. RBC’s upgrade, anchored in valuation and Cobre Panama upside in 2026, supports the near term catalyst of stronger sentiment around its growth pipeline, but does not remove the key risks tied to gold prices and revenue concentration in a few large assets.

    The most relevant recent announcement here is Franco Nevada’s stronger than expected Q3 2025 earnings, with revenue of US$487.7 million and net income of US$287.5 million, which reinforced confidence in its royalty based cash generation. That earnings strength, combined with a steady US$0.38 quarterly dividend, underpins the bullish view that high gold prices and new growth projects could support future revenue expansion, even as investors weigh concentration and permitting risks across key properties.

    Yet investors should be aware that heavy reliance on assets like Candelaria and Cobre Panama could...

    Read the full narrative on Franco-Nevada (it's free!)

    Franco-Nevada's narrative projects $2.3 billion revenue and $1.3 billion earnings by 2028.

    Uncover how Franco-Nevada's forecasts yield a CA$343.38 fair value, a 16% upside to its current price.

    Exploring Other Perspectives

    TSX:FNV 1-Year Stock Price Chart
    TSX:FNV 1-Year Stock Price Chart

    Seven members of the Simply Wall St Community value Franco Nevada between CA$124.27 and CA$343.38, highlighting a wide spread of individual expectations. Against this backdrop, the concentration risk tied to major assets like Cobre Panama and Candelaria remains a central issue that could materially affect future royalty income and is worth comparing with these varied fair value views.

    Explore 7 other fair value estimates on Franco-Nevada - why the stock might be worth as much as 16% more than the current price!

    Build Your Own Franco-Nevada Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.