Scotiabank adjusted its recommendation on Royal Gold (NASDAQ:RGLD) to a more neutral stance on Monday, lowering the stock's rating from Sector Outperform to Sector Perform while keeping the price target at $335.00.
The bank's revised view stems from the recent strength in Royal Gold's share price and the resulting impact on the stock's prospective return to Scotiabank's unchanged target. At the time of the update, Royal Gold was trading at $29.83, which the bank noted is only 0.99% below the company's 52-week high of $29.94.
Data referenced by Scotiabank shows the company has produced strong returns in recent periods: a gain of 19.24% over the past year and 8.99% over the prior six months. Scotiabank also cited technical indicators that suggest the equity may be in overbought territory, a factor contributing to the decision to temper its previous, more bullish rating.
In a client note, Scotiabank analyst Tanya Jakusconek summarized the rationale: "We have lowered our ratings on RGLD to Sector Perform from Sector Outperform. This downgrade for RGLD is solely on the share price appreciation and expected return to our target price."
The bank's action leaves its $335.00 valuation target intact even as it adopts a less positive rating. Royal Gold, a company that operates in the precious metals stream and royalty space, has seen its shares climb closer to Scotiabank's valuation threshold, prompting the more cautious posture.
In related coverage noted alongside the Royal Gold update, Eldorado Gold Corporation disclosed the launch of its first dividend program and received a more favorable rating from Scotiabank. Eldorado declared an initial quarterly dividend of $0.075 per common share; the first distribution is scheduled for March 13, 2026, to shareholders of record as of February 27, 2026.
Concurrently, Scotiabank upgraded Eldorado Gold from Sector Perform to Sector Outperform and raised the price target to $59.00 from $33.00. The upgrade and higher target were linked in the bank's note to expectations that Eldorado's Skouries project will enter production in the first quarter of 2026. The bank characterized these developments as key strategic moves for Eldorado.
Both pieces of analyst activity reflect valuation and near-term operational catalysts: in Royal Gold's case, a run-up in the share price has reduced the expected upside to the unchanged target; in Eldorado's case, a combination of project timing and the initiation of a dividend led Scotiabank to adopt a more positive outlook.
Investors and market participants watching precious metals streams and royalty equities, as well as producing and near-producing gold miners, will likely take note of these analyst adjustments that hinge on narrow valuation and operational milestones. The changes emphasize how recent price action and project timelines can influence analyst ratings even when target prices are maintained or increased.