Jefferies, through analyst Matthew Murphy, has revised its price target for Triple Flag Precious Metals Corp. (TFPM, Financial), increasing it from $24 to $26, while maintaining a Buy rating. This adjustment follows Triple Flag's recent announcement of its plan to acquire all issued and outstanding shares of Orogen Royalties Inc. (OGNRF) for approximately $304 million, which is equivalent to C$2.00 per Orogen share.
The acquisition deal highlights several attractive elements, according to Jefferies. Notably, the operator involved in the transaction is AngloGold Ashanti, a major player in the industry. Additionally, the assets are located in Nevada, a top-tier mining jurisdiction, which adds further value to the deal. Another appealing aspect is the full participation royalty structure that stems from this acquisition.
Although production from the Expanded Silicon project, part of the acquired assets, is not anticipated until after 2029, the strategic long-term benefits have been viewed positively by the firm. This acquisition is seen as a significant step for Triple Flag in enhancing its growth trajectory and expanding its asset portfolio in prime locations.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Triple Flag Precious Metals Corp (TFPM, Financial) is $21.67 with a high estimate of $24.00 and a low estimate of $19.00. The average target implies an downside of 2.40% from the current price of $22.20. More detailed estimate data can be found on the Triple Flag Precious Metals Corp (TFPM) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Triple Flag Precious Metals Corp's (TFPM, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Triple Flag Precious Metals Corp (TFPM, Financial) in one year is $21.22, suggesting a downside of 4.41% from the current price of $22.2. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Triple Flag Precious Metals Corp (TFPM) Summary page.
