Wheaton Precious Metals (WPM:CA) (WPM)
(About StockTargetAdvisor.com (STA Research): Is a Canadian investment research company specializing in advanced stock research and analysis. Our research team comprises of Financial Professionals).
Company Overview
Wheaton Precious Metals Corp. is one of the premier gold and precious metals streaming platforms globally. The structural advantage of Wheaton’s royalty/streaming model—low-cost access to production without operational exposure—positions the company favorably in the current macro environment of elevated gold prices, rising institutional flows into precious metals, and global de-dollarization trends.
WPM’s asset-light business model delivers leveraged upside to precious metals without the capital intensity and operational risk associated with traditional miners. With over 20 high-quality streaming agreements, including Salobo, Antamina, and Constancia, WPM benefits from long-life, low-cost assets operated by tier-1 mining partners.
Earnings Momentum Accelerating
Q1 2025 revenue rose +58% YoY, driven by a combination of volume growth and pricing tailwinds. EPS surged +54% YoY to US$0.55/share, well ahead of consensus. Forward EPS growth is forecast at ~61% YoY, reflecting volume expansion, lower cost of capital, and strong gold price realization.
Gold Tailwinds Support Margin Expansion
With gold trading above US$2,600/oz and Goldman Sachs forecasting US$3,700/oz by YE 2025, WPM is uniquely positioned to benefit via its fixed-margin structure. This upside is not only accretive to cash flows but also enhances visibility on long-term distributable earnings.
Technical Analysis
WPM has recently completed a base-on-base breakout pattern near CA$95 and maintains strong momentum with consistent support at its 21-day and 50-day moving averages. IBD ranks its Composite Rating at 98, placing it among the top technical setups in the materials sector.
Stock Forecast
The current consensus analyst rating is a “Buy”, with the 12 month average target forecast at at our CA$137.00 per share.
While the current implied upside of +6.79% is modest, some analysts have target forecasts reaching CA$170 pert share.
Risks to Valuation
Gold price sensitivity: Prolonged weakness in gold/silver pricing would impact top-line realization despite streaming model advantages.
Concentration risk: Salobo stream accounts for ~40% of NAV; disruptions here may disproportionately affect cash flow.
Valuation risk: The stock is trading at elevated multiples relative to slower-growth peers; execution and commodity tailwinds must hold to support premium.
Outlook
Wheaton Precious Metals offers investors a high-quality, lower-risk way to gain exposure to rising gold prices through its royalty and streaming model, which delivers consistent cash flows without the operational risks of traditional mining. With fixed, low-cost agreements on a diversified portfolio of world-class assets, the company benefits directly from higher metal prices while avoiding inflationary pressures and permitting delays. Backed by strong macroeconomic tailwinds, including central bank gold demand and geopolitical uncertainty, analysts maintain a “Buy” rating with a price target of CA$137.00.
David is veteran trader, and a former investment analyst at private equity firm, and is currently a STA Research analyst.
Wow, a $0.23 surprise on EPS? That’s like finding 23 cents in the couch cushions! Makes you wonder what those analysts were using to crunch the numbers. ?
UnitedHealth’s growth is like watching a toddler at a birthday party—everyone’s excited, but you’re just hoping they don’t throw a tantrum next quarter! ?