Osisko Gold Royalties Ltd (TSX:OR) CEO Sandeep Singh’s “unexpected departure” will likely weigh negatively on its stock as the company searches for direction amid this shake up of the executive team, Stifel Nicolaus Canada analysts wrote in a note to clients.
Nonetheless, they maintained their ‘Buy’ rating on Osisko Gold Royalties (TSX:OR) shares with a target price of C$27, implying more than 40% upside from current levels.
The Stifel analysts believe Singh’s investor engagement was instrumental over the last three plus years to recapture the eroded RoyaltyCo multiple of the company, stating that since Singh took over the top job at Osisko Gold Royalties in 2020 its share price has outperformed the senior royalty company average by about 18%.
“Osisko Gold Royalties is an intermediate mining royalty company that offers investors potential valuation multiple expansion from a growing diversified portfolio anchored by 20 producing mines and organic growth from mid-to-longer term development to exploration projects with significant exposure to Canadian assets,” the analysts wrote.
They added that as of 3Q 2022, Osisko Royalties will no longer be required to consolidate financial results to include Osisko Development, which in their view is an important announcement that better reflects the company’s underlying business.
Shares of Osisko Gold Royalties edged up 0.6% to $19.06 in late-morning trading on Friday and have gained 14% year to date.
Contact Sean at sean@proactiveinvestors.com