Metalla Royalty & Streaming downgraded to Sell from Buy at Cantor Fitzgerald

Cantor Fitzgerald analyst Mike Kozak downgraded Metalla Royalty & Streaming (MTA) to Sell from Buy with a price target of C$3.75, down from C$10.50, after Nova Royalty (NOVRF) entered into a “take under” agreement to be acquired by Metalla. 25 parties reportedly signed confidentiality agreements during the Nova strategic sales process, and of the eight proposals received, the superior bid was Metalla’s all-share offer, notes the firm. Given that this was the best result from a supposedly independent strategic sales process, this deal multiple “now sets the bar on the valuation level currently being ascribed to NAVPS-heavy royalty companies,” added the firm, which is cutting its target multiple on Metalla. This drives its lower price target and rating, the analyst explained.