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On Tuesday, Berenberg analysts maintained their Buy rating and $72.00 price target for Wheaton Precious Metals (NYSE:WPM), anticipating strong production results for the year 2024. The stock has shown remarkable momentum, delivering a 50.39% return over the past year and currently trading near its 52-week high of $68.64. According to InvestingPro data, analyst targets range from $70 to $85, suggesting potential upside despite the stock’s current overvalued status. The firm’s analysts adjusted their model for Wheaton ahead of the company’s production and sales results, which are expected to be released in the third week of February.
The revision comes after considering the fourth-quarter performance of Salobo in Brazil, operated by Vale, which indicated a positive outcome for Wheaton’s gold production. As a result, Berenberg predicts Wheaton’s gold-equivalent (GEO) production to reach the upper end of the company’s guidance range at 616,000 ounces, compared to the guidance of 550,000 to 620,000 ounces. InvestingPro analysis reveals the company maintains strong financial health with a GREAT overall score, supported by impressive gross profit margins of 80.4%.
Berenberg’s updated forecast aligns closely with the consensus from Visible Alpha, with projected revenues for 2024 at $1.28 billion, EBITDA at $982 million, and earnings per share (EPS) at $1.42. These figures are in line with Visible Alpha’s consensus, which also estimates 2024 revenues at $1.28 billion, EBITDA at $979 million, and EPS at $1.42. For deeper insights into WPM’s valuation metrics and growth potential, including 18 additional ProTips and comprehensive financial analysis, subscribers can access the full research report on InvestingPro.
Looking ahead to 2025, Berenberg expects Wheaton’s revenue to reach $1.45 billion, with EBITDA at $1.13 billion and EPS at $1.66. These projections are slightly more conservative than Visible Alpha’s 2025 consensus, which forecasts revenue at $1.60 billion, EBITDA at $1.26 billion, and EPS at $1.84. The difference in Berenberg’s forecast is attributed to modestly lower volumes of gold and silver and slightly lower metal prices.
Investors will be watching closely for Wheaton’s official production and sales results later this month to assess the company’s performance against these forecasts.
In other recent news, UBS has set a new target price for Wheaton Precious Metals, initiating coverage with a Buy rating. The firm’s confidence in the company is based on an expected growth in Gold Equivalent Ounce (GEO) output by approximately 30% by 2028, reaching an estimated 600,000 ounces. This growth is largely attributed to Wheaton Precious Metals’ diverse project portfolio, which includes contributions from developments such as Santo Domingo, Platreef, Blackwater, and Kone, in addition to core streams at Salobo and Pensaquito. This diversification is seen as a reduction in the company’s risk profile compared to competitors like Franco-Nevada and smaller gold miners. UBS’s valuation, based on a 20 times 2026 estimated EV/EBITDA ratio, forecasts a 30% upside to the stock, underscoring their belief in Wheaton Precious Metals’ strategy and execution capabilities. The $78.00 price target represents UBS’s projection for the stock’s future trajectory. These are among the recent developments concerning Wheaton Precious Metals.
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