- Wheaton Precious Metals Corp.NPV (CDI)
- 11 August 2025 10:55:47
Source: Sharecast
Berenberg said the company delivered record quarterly earnings and strong beats versus consensus, of 7% for adjusted earnings per share and 15% for operating cash flows, which were driven by a combination of higher production, sales volumes, realised prices and margins.
The German bank, which kept its 'buy' rating on the stock, noted that production guidance for 2025 was maintained, and that several near-term development streams were all progressing on track, and highlighted that execution of Wheaton's "compelling" expected 32% volume growth to 2028 was "a key facet" to achieving a continued re-rate higher.
Berenberg said its updated model had lifted its 2025 underlying earnings estimate by roughly 4% and earnings per share by about 3%. However, it also moderated its grade estimates at Wheaton's San Dimas asset in Mexico, which trimmed its 2027 earnings expectation. However, improved operating cash flows increased its end-2025 net-cash forecast by roughly 6%.
"As Wheaton has delivered consistent output from its high-quality baseline portfolio (capitalising on strong precious metals prices), and with its near-term growth projects all progressing on track, we have witnessed a multiple re-rate. We, therefore, lift our NAV multiple to 3x from 2.5x, reflecting a c10% premium to the average trading level since January 2025 of 2.75x (on our NAV estimate)," said Berenberg.
"We maintain our 30x EBITDA multiple, which reflects Wheaton's near-term volume growth trajectory. The shares are currently trading on 3x NAV and 28.3x 12-month forward EBITDA. Note that Wheaton's implied share price on 30x 2027E EBITDA is 8,700p. Further, if we run our model at spot gold and silver prices, our price target increases to 9,400p, representing c25% upside."
Reporting by Iain Gilbert at Sharecast.com