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On Monday, Scotiabank (TSX:BNS) maintained a positive outlook on Wheaton Precious Metals (NYSE:WPM) shares, with analysts at the firm raising the price target slightly to $79.00 from the previous $78.00, while reiterating a Sector Outperform rating on the stock. The stock, currently trading near its 52-week high of $74.93, has delivered an impressive 68% return over the past year. According to InvestingPro analysis, the company maintains a GREAT financial health score, though it currently appears to be trading above its Fair Value.
The revised price target comes as Wheaton Precious Metals focuses on two key objectives for the year 2025. The first objective is the de-risking of its development assets, which include the Goose Project, Blackwater Project, Mineral Park, and Platreef Project. These assets are expected to begin production this year, potentially contributing an additional 20-25 thousand gold equivalent ounces (GEOs) to the company’s output.
The second area of focus for Wheaton Precious Metals is engaging in merger and acquisition (M&A) opportunities within the precious metals sector. The company is looking to capitalize on these opportunities despite anticipating a 40% production growth over the next five years.
The Scotiabank analyst highlighted the strategic initiatives that Wheaton Precious Metals is undertaking, stating, "Our target price is adjusted to $79 (up $1) and we maintain our Sector Outperform rating." This statement underlines the analyst’s confidence in the company’s growth prospects and its ability to successfully manage its development projects and explore M&A opportunities.
Investors and market watchers will be keeping an eye on Wheaton Precious Metals as it progresses towards its production start-up later this year, which is expected to contribute significantly to the company’s overall production numbers. The slight increase in the price target reflects the firm’s optimism about the company’s future performance and strategic direction.
In other recent news, Wheaton Precious Metals Corp. reported its fourth-quarter 2024 earnings, revealing record revenue of $381 million, although this figure was slightly below the forecasted $394.97 million. The company’s earnings per share met expectations at $0.44. Wheaton achieved a record annual revenue of $1.3 billion, marking a 26% increase from the previous year. The company is targeting significant production growth, aiming for 870,000 gold equivalent ounces by 2029. Additionally, Berenberg raised its price target for Wheaton’s stock from $73 to $75, reflecting confidence in the company’s financial performance and market conditions. The firm highlighted Wheaton’s strong position in the precious metals market and its potential for growth. These developments underscore Wheaton’s strategic focus and operational efficiencies, which continue to bolster investor confidence.
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