12:07 PM EDT, 05/13/2026 (MT Newswires) -- CIBC Capital Markets on Tuesday reiterated its neutral rating on the shares of Freehold Royalties (FRU.TO) while raising its price target to C$18.50 from C$18.00 following the company's first-quarter results.

The higher price target was based on a target 2026E EV/DACF multiple of 11.5x, CIBC said.

Freehold's cash flows in the first quarter aligned with expectations on slightly lower-than-expected production volumes, CIBC said.

"Activity levels were surprisingly weak in the U.S. for FRU, but this was offset by strong activity in Canada,"CIBC said. "We believe U.S. activity should inflect for FRU, based on positive H2/26 commentary from U.S. drillers and operators."

Freehold is trading at a 2026 estimated EV/DACF of 11.0x and a free cash flow yield of 9%, compared with royalty peers at 15.7x and 6%, respectively, CIBC said.

Price: 17.55, Change: -0.20, Percent Change: -1.13