Thanks to an exceptional business model and new growth impulses, Royal Gold shares are attracting the attention of analysts. An expert gives a purchase recommendation.
• Major Swiss bank UBS starts coverage with “Buy” and price target of $325
• Significant increase in production expected in 2026
• Other analysts are also optimistic
As a safe haven in uncertain times, the yellow precious metal is already popular with investors. It’s no wonder that investors are also looking for alternative investment methods in gold. Recently, the shares of Royal Gold, a precious metal streaming company, particularly attracted attention.
UBS starts with a buy recommendation – a fresh look at the stock
The major Swiss bank UBS has started the valuation for the Denver-based company. As a report from Investing.com shows, the bank recommends buying the stock and sets a price target of $325.
According to UBS, the price development to date already reflects investor confidence. In the past twelve months, the share price has increased by almost 37 percent (as of: closing price on April 23, 2026). Nevertheless, the bank sees further potential that has not yet been fully reflected in the price.
Why the business model is different than mine operators
Of particular interest is the US company’s rather unusual business model: the group specializes in streaming and royalty models. In concrete terms, this means: Royal Gold provides capital to mine operators and in return receives the right to purchase part of the production under predetermined conditions or to share in the proceeds.
This model ensures that the cost structure remains comparatively stable and operational risks – such as construction delays or budget overruns in mining projects – are significantly reduced. UBS highlights that Royal Gold offers “low-risk leverage on rising gold prices,” as analyst Daniel Major emphasizes, according to Investing.com.
New projects and increasing production as price drivers
After several years of declining production, UBS now sees a clear turning point: According to Investing.com, Royal Gold is entering a growth phase again after a three- to four-year period of declining gold equivalent ounces. The drivers include acquisitions such as Sandstorm/Horizon and projects related to Kansanshi.
The major Swiss bank expects production to increase by more than 30 percent in 2026. The momentum will also remain high in the medium term: UBS expects organic growth of around 20 percent for the period up to 2030.
At the same time, there is also a clear trend on the sales side: In the last twelve months, sales increased by 43 percent. According to Investing.com, the company also has additional projects that could open up further production potential in the long term.
Rating and analyst perspective: Re-rating potential and comparison with the competition
In addition to growth, valuation is also coming into focus, as the stock is currently trading around 15 percent below its historical average EV/EBITDA multiple. UBS sees scope for a reassessment here if growth materializes as expected and the predictability of the results continues to increase.
Analysts also see potential for catching up compared to the competition. According to Investing.com, UBS points to a lower dependency on individual projects compared to competitors such as Franco-Nevada or Wheaton Precious Metals.
A look at other analysts confirms the positive underlying trend. According to TipRanks, RBC Capital also recently issued a buy recommendation and set a price target of $375, which corresponds to even higher upside potential. Overall, according to the TipRanks analyst consensus, there is a moderate buy rating with an average price target of $333 and an upside potential of around 32 percent to the last closing price of $251.25 (as of closing price April 23, 2026).
Benedict Kurschat, editorial team at finanzen.net
This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claims for recourse.
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