On Tuesday, H.C. Wainwright maintained a Buy rating on shares of EMX Royalty Corporation (NYSE:EMX) and increased its price target to $7.00 from $6.75. This adjustment follows the company's announcement of its third-quarter financial results for 2024 on November 8, 2024.
EMX Royalty reported generating $7.0 million in revenue and other income for the quarter, resulting in a net income of $1.2 million, or $0.01 per share. These figures represent a decline from the third quarter of 2023, which saw revenue and other income of $12.9 million and a net income of $2.4 million, or $0.02 per share.
The reported decrease in royalty revenue and other income year-over-year is largely due to a one-time inclusion of $6.7 million in catch-up payments from the Timok royalty in the third quarter of 2023, which were for previous years. When these payments are excluded, royalty revenue for this quarter actually reflects a 38% increase year-over-year, indicating growth for the firm.
H.C. Wainwright highlights EMX Royalty's potential for impressive year-end results, citing continued royalty revenue growth and favorable commodity price trends as driving factors. The firm's optimism about EMX's prospects is reflected in the revised price target.
The analyst's commentary underscores the belief that EMX Royalty is on a strong trajectory, with the increase in the price target primarily based on updated commodity price assumptions incorporated into their financial model. The analyst firm reaffirms its confidence in EMX's ability to sustain its growth momentum.
In other recent news, EMX Royalty Corporation has experienced several significant developments. The company reported an increase in its Q2 2024 revenue to $6.0 million, up from $3.4 million during the same period in 2023. Despite this increase, the company reported a net loss of $4.0 million. A noteworthy detail was the significant rise in royalty revenue, which reached $5.1 million, up from $2.1 million in the same period last year.
EMX also announced a deal related to its Gumsberg Project in Sweden with Alpha Future Funds S.C.S. The agreement involves the sale of the polymetallic site, and EMX is set to receive an immediate cash payment of $100,000 at closing. Additional cash payments totaling $850,000 to EMX are expected if Alpha acquires a complete 100% interest in the Gumsberg Project.
Following these developments, H.C. Wainwright has adjusted the stock price target for EMX Royalty, reducing it to $6.50 from the previous $6.75, while maintaining a Buy rating. The company also disclosed a material change in its operations, as indicated in a Form 6-K filed with the SEC, although the specific details of the change have yet to be clarified. These are the recent developments concerning EMX Royalty Corporation.
InvestingPro Insights
To complement the analysis provided by H.C. Wainwright, recent data from InvestingPro offers additional context on EMX Royalty Corporation's financial position. Despite the reported decrease in revenue for Q3 2024, the company has shown a robust revenue growth of 25.53% over the last twelve months, reaching $26.82 million. This aligns with the analyst's observation of underlying growth when excluding one-time payments.
InvestingPro Tips highlight that EMX operates with a moderate level of debt and maintains liquid assets that exceed short-term obligations. These factors contribute to the company's financial stability, which is crucial for sustaining operations and pursuing growth opportunities in the royalty sector.
However, it's worth noting that EMX is not currently profitable, with a negative P/E ratio of -67.96. This aligns with another InvestingPro Tip indicating that analysts do not anticipate the company will be profitable this year. This information provides important context to H.C. Wainwright's optimistic outlook and price target increase.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips for EMX Royalty Corporation, providing a deeper understanding of the company's financial health and market position.
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