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TD Securities upgrades Wheaton Precious Metals stock to buy on growth potential

Published 2024-03-18, 09:21 a/m
© Reuters.

On Monday, TD (TSX:TD) Securities has changed its rating on Wheaton Precious Metals (NYSE:WPM), upgrading the stock from Hold to Buy and lifting its price target to $53.00 from the previous $51.00. The firm expressed a favorable outlook on WPM's growth potential compared to its peer, Franco-Nevada.

The analyst from TD Securities highlighted WPM's Gold Equivalent Ounce (GEO) growth profile, which is expected to outperform that of Franco-Nevada in the coming years. This assessment contributed to the decision to upgrade the stock and adjust the price target upwards.

WPM's move to a progressive dividend policy was also noted as a positive factor in the analyst's evaluation. The progressive dividend policy is typically seen as a sign of a company's confidence in its future earnings and cash flow, which can be attractive to investors looking for steady income.

The new price target of $53.00 represents a modest increase from the previous target but indicates a belief in the company's continued upward trajectory. The upgrade to a Buy rating suggests that TD Securities sees more upside potential in WPM's shares.

Wheaton Precious Metals Corp. is a mining company that sells precious metals, including gold, silver, and palladium. The company's stock performance is closely watched by investors who have an interest in the precious metals market and mining sector.

This upgrade by TD Securities may influence investors' perception of WPM's stock, potentially leading to increased investor interest and activity in the company's shares on the New York Stock Exchange.

InvestingPro Insights

Following the recent upgrade by TD Securities, Wheaton Precious Metals (NYSE:WPM) has garnered increased attention from investors. To provide further context, InvestingPro data and tips offer some additional insights into the company's financial health and stock performance.

InvestingPro data shows that Wheaton Precious Metals has a market capitalization of $20.12 billion, reflecting its significant presence in the precious metals market. The company's P/E ratio stands at 37.47, and the adjusted P/E ratio for the last twelve months as of Q4 2023 is 37.69, indicating that the stock is trading at a high earnings multiple. This aligns with one of the InvestingPro Tips, which notes that WPM is trading at a high earnings multiple, suggesting that investors are willing to pay a premium for the company's earnings potential.

Another key metric is the company's strong gross profit margin, recorded at 77.54% for the last twelve months as of Q4 2023. This high margin underscores WPM's efficiency in generating profit from its sales, which is a positive sign for potential investors. Moreover, the company's ability to maintain dividend payments for 14 consecutive years, as highlighted by an InvestingPro Tip, reinforces its appeal to those seeking reliable income streams.

For investors looking for more in-depth analysis, there are additional InvestingPro Tips available at These tips include observations on the company's low price volatility and its capacity to cover interest payments with cash flows, providing a fuller picture of WPM's financial stability.

Interested readers can take advantage of a special offer to access these insights: use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. This offer gives access to a total of 12 InvestingPro Tips for Wheaton Precious Metals, which could be invaluable for making informed investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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