The Globe and Mail reports in its Wednesday edition that Industrial Alliance analyst Puneet Singh raised Osisko Gold Royalties "strong buy" from "buy," saying it is "too cheap to ignore." The Globe's David Leeder writes in the Eye On Equities column that Mr. Singh believes a royalty company in a bull market should not trade at a discount to its net asset value. He also calls Osisko his top pick in the royalty subsector. Mr. Singh thinks Osisko shares are set to rerate with the spin out of its Cariboo gold project in British Columbia. Mr. Singh boosted his share target by $4 to $24. Analysts on average target the shares at $20.80. Mr. Singh says in a note: "In October, Osisko announced it would be spinning out its Cariboo development asset into a new vehicle (Osisko Development Corp. or ODV. ... We think there may be some uncertainty amongst investors given that Osisko still holds a large equity position in ODV and is helping some of its smaller private royalty/streams (Renard, Amulsar) recover. But better messaging with the new corporate structure should unlock value. ... The message from investors was clear, they wanted Osisko to be a strict royalty company and the creation of ODV was designed to do that."
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