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Investing.com - Jefferies raised its price target on Wheaton Precious Metals (NYSE:WPM) to $114.00 from $112.00 on Thursday, while maintaining a Buy rating on the stock. The company’s stock has shown remarkable momentum, delivering an 88.6% return year-to-date, according to InvestingPro data.
The firm cited Wheaton’s high-quality and diversified asset base as key factors behind its positive outlook. Jefferies also highlighted the company’s high-margin and scalable business model in its assessment. This is reflected in WPM’s impressive 83.8% gross profit margin and strong 46.79% revenue growth over the last twelve months. However, InvestingPro’s Fair Value analysis suggests the stock may be trading above its intrinsic value.
Jefferies’ new target price is based on a weighted valuation approach, with 70% of the target derived from a 2.8x multiple to its revised net asset value per share (NAVPS) estimate.
The remaining 30% of the target is based on a 28.0x price to next twelve months cash flow per share (P/NTM CFPS) multiple applied to Jefferies’ revised estimates.
Both multiples used in the valuation remain unchanged from previous analyses and are generally in line with those applied to royalty and streaming peers in the precious metals sector.
In other recent news, Wheaton Precious Metals reported impressive second-quarter 2025 financial results, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $0.63, which was 12.5% above the forecasted $0.56. Revenue also exceeded projections, totaling $503 million compared to the anticipated $438.31 million, marking a 14.76% surprise. Additionally, operating cash flow was reported at $415 million, a 77% increase from the previous year. These record earnings led Berenberg to raise its price target for Wheaton Precious Metals to C$78.00, maintaining a Buy rating. CFRA also increased its price target to C$158.00, citing the company’s strong quarterly performance. Scotiabank adjusted its price target to $109.00, emphasizing the de-risking of development assets. These developments reflect Wheaton’s robust financial health and positive outlook from various analysts.
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