Matt Murphy, an analyst from BMO Capital, has initiated a new Buy rating on Wheaton Precious Metals (WPM).
Matt Murphy has given his Buy rating due to a combination of factors that highlight Wheaton Precious Metals’ strong market position and growth potential. The company has consistently delivered impressive returns on invested capital, outperforming both its peers and the commodity price over the past five years. This track record of strong performance is a key reason for the positive outlook.
Additionally, Wheaton Precious Metals benefits from a high beta to the gold price, providing investors with significant leverage to precious metal prices while maintaining a stable cost structure. The company’s revenue is predominantly derived from precious metals, ensuring a strong correlation with gold price movements. Furthermore, Wheaton’s robust development pipeline, with several quality projects set to come online, positions it for substantial production growth over the next five years, significantly outpacing the peer average. These factors collectively support the Buy rating and the target price of C$129.
According to TipRanks, Murphy is a 5-star analyst with an average return of 18.3% and a 69.64% success rate. Murphy covers the Basic Materials sector, focusing on stocks such as Agnico Eagle, Barrick Gold, and Franco-Nevada.
In another report released today, Raymond James also maintained a Buy rating on the stock with a $90.00 price target.