The Globe and Mail reports in its Thursday, Sept. 24, edition that Industrial Alliance Securities analyst Puneet Singh says Nomad Royalty Company ($1.79) possesses a business model that is "high margin, safe and proven at providing returns." The Globe's David Leeder writes in the Eye On Equities column that Mr. Singh began coverage with a "buy" rating and $2.30 share target. Analysts on average target the shares at $2.25. Mr. Singh says in a note: "The royalty/streaming business model is tried, tested, and confirmed to generate value over time. Royalty firms are the best allocation for those looking for safer gold exposure because they don't face the capital and operating cost risks a traditional miner incurs, and have higher safety margins on ROI [return on investment]. These companies have garnered the highest multiples, not only in a bull gold market but even in a bear gold market because the volume of royalty deals rises during that time as miners have difficulty accessing capital. Over time, most royalty firms have been able to return in excess of 25-per-cent CAGR [compound annual growth rate] since their inception. ... We would expect Nomad to continue to remain active trying to source new deals."
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