UPDATE: Morgan Stanley Initiates Coverage on Royal Gold with Overweight Rating, $77 PT on Positive Outlook

In a report published Thursday, Morgan Stanley analyst Brad Humphrey initiated coverage on Royal Gold RGLD with an Overweight rating and $77.00 price target. In the report, Morgan Stanley noted, “We expect RGLD to be FCF positive in F2014 and will increase revenue ~50% by F2017. With minimal future capex commitments, its growth is already paid for. We believe the market remains cautious on its key asset, Mt. Milligan (currently ramping up), and that multiples will expand as the story continues to de-risk” Royal Gold closed on Wednesday at $61.14.