On Tuesday, H.C. Wainwright adjusted its price target on shares of EMX Royalty Corporation (NYSE:EMX) to $6.75, up from the previous $6.50, while reaffirming a Buy rating on the stock.
This change follows EMX Royalty's announcement of their first quarter financial results for 2024 on Monday. The company reported $6.2 million in revenue for the quarter, which is a significant increase from the $2.7 million recorded in the same period the previous year.
The revenue growth was attributed to a $1.3 million contribution in royalties from the Timok project, which achieved a quarterly production record from the upper zone.
Despite the increase in revenue, EMX Royalty experienced a net loss of $2.2 million, or ($0.02) per share. This loss is an improvement over the first quarter of 2023, where the company reported a net loss of $3.7 million, or ($0.03) per share.
The analyst from H.C. Wainwright highlighted the revenue growth as a positive development, indicating that the net loss is largely irrelevant to their assessment. The raised price target reflects confidence in the company's performance and the analyst's continued recommendation for investors to buy shares of EMX Royalty Corporation.
EMX Royalty Corporation's financial results and the subsequent price target increase by H.C. Wainwright demonstrate the company's progress in generating revenue through its royalty agreements. The analyst's maintained Buy rating and increased price target suggest a positive outlook for the company's stock performance.
InvestingPro Insights
In light of the recent financial results and H.C. Wainwright's updated price target for EMX Royalty Corporation, investors may find additional context through real-time data and InvestingPro Tips. The company's significant revenue growth over the last twelve months, reported at 56.3%, reflects a robust upward trajectory in earnings. This growth is further exemplified by an impressive quarterly revenue increase of 127.57% in Q1 2024, signaling strong operational performance.
However, it's important to note that EMX is currently not profitable, as indicated by a negative P/E ratio of -278.03 and a basic and diluted EPS of -$0.03. The company's gross profit margin stands at a healthy 62.29%, which suggests that while EMX is generating meaningful revenue, it is yet to translate this into net earnings. Additionally, the company has experienced a significant 28.23% return over the last three months, which aligns with the positive sentiment expressed by H.C. Wainwright.
InvestingPro Tips highlight that EMX operates with a moderate level of debt and does not pay dividends, focusing instead on reinvesting into its core business. For investors interested in a deeper dive, there are further tips available on InvestingPro, which could provide more nuanced investment guidance. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and uncover more than 5 additional InvestingPro Tips for EMX Royalty Corporation that could inform your investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.