UBS Upgrades Wheaton Precious Metals to Buy with $160 Target
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy WPM?
Source: seekingalpha
- Rating Upgrade: UBS upgraded Wheaton Precious Metals from Neutral to Buy with a $160 price target, anticipating the company will enter a volume growth phase targeting approximately 70% growth in gold equivalent ounces by FY 2025, which should enhance earnings compared to peers.
- Production Stability: Wheaton's gold equivalent production has remained stable at 600K-700K ounces over the past five years, demonstrating resilience and stability in its operations despite no further upside in gold or silver prices, which is crucial for maintaining investor confidence.
- Valuation Discount: The stock currently trades at about 15x 2027 enterprise value to EBITDA, representing a 30% discount to its five-year average, indicating that the market is not fully pricing in the company's diversified and low-risk organic growth potential, which could attract more investors.
- Growth Strategy: Analysts expect Wheaton to acquire more streams and royalties to supplement its growth, thereby reducing single-asset exposure and earnings volatility, which will enhance the company's overall growth capability and competitive position in the market.
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Analyst Views on WPM
Wall Street analysts forecast WPM stock price to rise
9 Analyst Rating
8 Buy
1 Hold
0 Sell
Strong Buy
Current: 118.950
Low
118.00
Averages
137.91
High
160.00
Current: 118.950
Low
118.00
Averages
137.91
High
160.00
About WPM
Wheaton Precious Metals Corp. is a Canada-based precious metals streaming company. The Company, through strategic streaming agreements, partners with mining companies to secure a portion of their future precious metal production. The Company has approximately 35 streaming agreements. Its segments include Gold, Silver, Palladium, Platinum and Cobalt. Its gold segment includes Salobo, Sudbury, Constancia, San Dimas, Stillwater, Blackwater, Platreef and others. Its Silver segment includes Penasquito, Antamina, Constancia, Blackwater and others. Its Palladium segment includes Stillwater and Platreef. Its Platinum segment includes Marathon and Platreef. Its Cobalt segment includes Voisey's Bay. The Company has also entered into a definitive agreement to acquire the Spring Valley Project located in Nevada, United States of America.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
UBS Upgrades Wheaton Precious Metals to Buy with $160 Target
- Rating Upgrade: UBS upgraded Wheaton Precious Metals from Neutral to Buy with a $160 price target, anticipating the company will enter a volume growth phase targeting approximately 70% growth in gold equivalent ounces by FY 2025, which should enhance earnings compared to peers.
- Production Stability: Wheaton's gold equivalent production has remained stable at 600K-700K ounces over the past five years, demonstrating resilience and stability in its operations despite no further upside in gold or silver prices, which is crucial for maintaining investor confidence.
- Valuation Discount: The stock currently trades at about 15x 2027 enterprise value to EBITDA, representing a 30% discount to its five-year average, indicating that the market is not fully pricing in the company's diversified and low-risk organic growth potential, which could attract more investors.
- Growth Strategy: Analysts expect Wheaton to acquire more streams and royalties to supplement its growth, thereby reducing single-asset exposure and earnings volatility, which will enhance the company's overall growth capability and competitive position in the market.
See More
WHEATON PRECIOUS METALS CORP: UBS Upgrades Rating from Neutral to Buy
Company Announcement: Wheaton Precious Metals Corp has announced a strategic decision to buy from Neutral, indicating a shift in their purchasing strategy.
Market Implications: This move may have significant implications for the precious metals market, potentially affecting supply and pricing dynamics.
See More
Wall Street's Latest Ratings Overview
- Honeywell Upgrade: BMO has upgraded Honeywell to Outperform, citing additional opportunities through the end of the decade; despite lagging shares, the company's strong balance sheet provides downside protection and supports upcoming spin-offs.
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- STMicroelectronics Upgrade: Analyst Stephen Simpson upgraded STMicroelectronics from Hold to Buy, highlighting the company's successful pivot towards high-growth sectors like robotics and data centers, with expectations for business recovery in 2026 and acceleration into 2027.
- Wheaton Precious Metals Rating Change: Trapping Value upgraded Wheaton Precious Metals from Sell to Hold, believing that after significant market value erosion, the stock's valuation has retreated to near fair value, presenting a better entry point for traders.
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- Gold Holdings Reduction: Despite heightened tensions in the Middle East typically driving gold demand, Inside Edge Capital has cut its positions in Anglogold Ashanti PLC and Agnico Eagle Mines Ltd within its Strategic Income & Growth portfolio, reflecting a cautious outlook on gold due to rising real interest rates and a strengthening dollar.
- Emerging Markets Exposure Cut: In response to increasing global risk aversion, Inside Edge Capital has reduced its investments in emerging markets, notably cutting its position in Kinross Gold Corp within its more aggressive Tactical Alpha Growth portfolio, indicating diminished confidence in these markets.
- Market Liquidity Shifts: As U.S. interest rates rise and the dollar strengthens, demand for liquidity in emerging markets has decreased, leading to a flow of funds back to the U.S., with Inside Edge Capital suggesting a potential reassessment of investments related to artificial intelligence in the future.
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Market Trends: Investors are increasingly turning to dividend stocks to avoid sell-offs, as many companies have been rewarding shareholders with increased dividends despite a challenging growth environment.
Company Performances: Key companies in the semiconductor and aerospace sectors, such as Amat, Applied Materials, and Wheaton Precious Metals, have reported strong performances and significant dividend increases, with some delivering over 100% returns in the past year.
Dividend Increases: Applied Materials announced a 15% increase in its quarterly dividend, while Wheaton Precious Metals and Elbit Systems also reported substantial dividend boosts, reflecting their strong financial positions and growth prospects.
Investment Recommendations: Analysts are recommending five specific stocks for investors to consider, highlighting their potential for growth and attractive dividend yields, despite the overall market's volatility and lower yields in some sectors.
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UBS Upgrades Wheaton Precious Metals to Buy with $160 Target
- Rating Upgrade: UBS upgraded Wheaton Precious Metals from Neutral to Buy with a $160 price target, anticipating the company will enter a volume growth phase targeting approximately 70% growth in gold equivalent ounces by FY 2025, which should enhance earnings compared to peers.
- Production Stability: Wheaton's gold equivalent production has remained stable at 600K-700K ounces over the past five years, demonstrating resilience and stability in its operations despite no further upside in gold or silver prices, which is crucial for maintaining investor confidence.
- Valuation Discount: The stock currently trades at about 15x 2027 enterprise value to EBITDA, representing a 30% discount to its five-year average, indicating that the market is not fully pricing in the company's diversified and low-risk organic growth potential, which could attract more investors.
- Growth Strategy: Analysts expect Wheaton to acquire more streams and royalties to supplement its growth, thereby reducing single-asset exposure and earnings volatility, which will enhance the company's overall growth capability and competitive position in the market.
See More
WHEATON PRECIOUS METALS CORP: UBS Upgrades Rating from Neutral to Buy
Company Announcement: Wheaton Precious Metals Corp has announced a strategic decision to buy from Neutral, indicating a shift in their purchasing strategy.
Market Implications: This move may have significant implications for the precious metals market, potentially affecting supply and pricing dynamics.
See More
Wall Street's Latest Ratings Overview
- Honeywell Upgrade: BMO has upgraded Honeywell to Outperform, citing additional opportunities through the end of the decade; despite lagging shares, the company's strong balance sheet provides downside protection and supports upcoming spin-offs.
- Disney Outlook: Wells Fargo reiterates Disney as Overweight, lowering its price target to $148 but highlighting the new leadership team's potential to revitalize the narrative, making Q2 a pivotal moment for growth acceleration.
- Knight-Swift Upgrade: Evercore ISI has upgraded Knight-Swift to Outperform, viewing the transport company as compelling due to its leverage to improving fundamentals, while trading at one of the lowest multiples in its peer group.
- FuboTV Initiation: B Riley initiates coverage of FuboTV with a Buy rating and a target price of $18, emphasizing the stock's undervaluation and its potential in the consumer live television streaming market.
See More
STMicroelectronics Upgraded as Focus Shifts to Growth, Wheaton Maintains Hold Rating
- STMicroelectronics Upgrade: Analyst Stephen Simpson upgraded STMicroelectronics from Hold to Buy, highlighting the company's successful pivot towards high-growth sectors like robotics and data centers, with expectations for business recovery in 2026 and acceleration into 2027.
- Wheaton Precious Metals Rating Change: Trapping Value upgraded Wheaton Precious Metals from Sell to Hold, believing that after significant market value erosion, the stock's valuation has retreated to near fair value, presenting a better entry point for traders.
- Teekay Corporation Downgrade: Henrik Alex downgraded Teekay Corporation from Buy to Sell, arguing that the stock is trading at a substantial premium to its net asset value, suggesting investors rotate into its subsidiary, Teekay Tankers, for better returns.
- Palo Alto Networks Rating Adjustment: Gary Alexander downgraded Palo Alto Networks to Neutral, noting that while the company remains a leader in cybersecurity, recent acquisitions pose integration risks and other stocks in the sector currently offer superior value, prompting caution.
See More
Portfolio Adjustments to Navigate Market Volatility
- Portfolio Rebalancing: Amid recent market volatility, Inside Edge Capital executed three portfolio adjustments, reallocating 2% to the short-term Treasury ETF (BIL) and 5% to the inverse Nasdaq ETF (PSQ) to mitigate potential downside risks.
- Gold Holdings Reduction: Despite heightened tensions in the Middle East typically driving gold demand, Inside Edge Capital has cut its positions in Anglogold Ashanti PLC and Agnico Eagle Mines Ltd within its Strategic Income & Growth portfolio, reflecting a cautious outlook on gold due to rising real interest rates and a strengthening dollar.
- Emerging Markets Exposure Cut: In response to increasing global risk aversion, Inside Edge Capital has reduced its investments in emerging markets, notably cutting its position in Kinross Gold Corp within its more aggressive Tactical Alpha Growth portfolio, indicating diminished confidence in these markets.
- Market Liquidity Shifts: As U.S. interest rates rise and the dollar strengthens, demand for liquidity in emerging markets has decreased, leading to a flow of funds back to the U.S., with Inside Edge Capital suggesting a potential reassessment of investments related to artificial intelligence in the future.
See More
Dividend Increases: 3 Stocks Raising Payouts by 15% to 33%
Market Trends: Investors are increasingly turning to dividend stocks to avoid sell-offs, as many companies have been rewarding shareholders with increased dividends despite a challenging growth environment.
Company Performances: Key companies in the semiconductor and aerospace sectors, such as Amat, Applied Materials, and Wheaton Precious Metals, have reported strong performances and significant dividend increases, with some delivering over 100% returns in the past year.
Dividend Increases: Applied Materials announced a 15% increase in its quarterly dividend, while Wheaton Precious Metals and Elbit Systems also reported substantial dividend boosts, reflecting their strong financial positions and growth prospects.
Investment Recommendations: Analysts are recommending five specific stocks for investors to consider, highlighting their potential for growth and attractive dividend yields, despite the overall market's volatility and lower yields in some sectors.
See More
