Analysts Are Neutral on Top Materials Picks

By Austin Angelo

Analysts fell to the sidelines weighing in on Royal Gold (NASDAQ: RGLD) and NGL Energy Partners (NYSE: NGL) with neutral ratings,indicating that the experts are neither bullish nor bearish on the stocks.

Royal Gold (NASDAQ: RGLD)

FBR Capital analyst Lucas Pipes reiterated a Hold rating on Royal Gold (NASDAQ: RGLD) on November 4 and set a price target of $80. The company’s shares opened today at $74.85.

Pipes said:

“On November 2, Royal Gold announced a slight FY1Q EPS beat ($0.46 actual versus consensus of $0.42) with adjusted EBITDA slightly below expectations ($88.1M versus consensus of $91.3M). Against our estimates, the company was mostly in line, though GEOs were slightly lower than we expected due to a small inventory build. Royal Gold highlighted that its interests could benefit from additional development and exploration activities at no capital cost to the company. At Penasquito, construction would add incremental annual production of 100k– 140k oz of gold and 4M–6M oz of silver. At Pueblo Viejo, a tailings expansion could grow reserves by up to 7.7M oz of gold and 44M oz of silver. Additionally, Barrick is forecasting Pueblo Viejo’s volumes to increase from Crossroads, growing to over 500,000 oz of gold annually through 2024. The tie-in was also completed for the secondary crusher at Mount Milligan, with commissioning underway, expected to increase throughput to over 60,000 tpd. The company also noted that Pueblo Viejo’s CY16 operators’ production estimate was increased.”

According to TipRanks.com, Pipes is a 4-star analyst with an average return of 2.4% and a 50.9% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Stillwater Mining Company, Westmoreland Coal Company, and Hallador Energy Company.

Royal Gold has an analyst consensus of Moderate Buy, with a price target consensus of $80.

NGL Energy Partners (NYSE: NGL)

FBR Capital analyst Robert Balsamo reiterated a Hold rating on NGL Energy Partners (NYSE: NGL) on November 4. The company’s shares opened today at $16.65.

According to TipRanks.com, Balsamo is ranked 0 out of 5 stars with an average return of -16.2% and a 29.4% success rate. Balsamo covers the Basic Materials sector, focusing on stocks such as Calumet Specialty Products, Dcp Midstream Partners Lp, and EnLink Midstream Partners.

NGL Energy Partners has an analyst consensus of Moderate Buy.