Berenberg lowers target price on Wheaton Precious Metals, reiterates 'buy' rating

(Sharecast News) - Analysts at Berenberg lowered their target price on precious metals streaming firm Wheaton Precious Metals from 13,300p to 13,000p on Monday, but reiterated its 'buy' rating on the stock as it pointed to its "impossible to ignore" volume growth. Berenberg said Wheaton Precious Metals was "one of the best ways for investors to participate in a strong precious metals price environment", with the company's streaming model "able to really demonstrate its worth" in light of strong oil prices.

The German bank, which has a 'buy' rating on the stock, noted that Wheaton's streaming model means that it has no operational expenditure risk, no foreign currency risk and no capital expenditure risk.

"This should mean, we think, that margins are incredibly defensive, which we believe is a compelling part of the investment case in an environment where inflation has scope to rise," said Berenberg.

"Margins aside, we think that a key driver of share price outperformance in the short and medium term will be volume growth; based on its existing streams, we expect Wheaton's volumes to lift by 40% over 2026-30E, which is a reflection of new streams coming online, as well as some growth from existing streams."

However, Berenberg also noted that its assumptions do not include future streams and said it was "convinced there are more of these to come", which it said addes "even more growth" to the story.

"We update our model for the Q4 results, released on 13 March. We make some conservative adjustments to volumes; we also lift our D&A assumptions for Antamina, which reduces our estimates. Our price target trims to USD177/GBp13,000 per share; we are Buy-rated, with the shares trading on 2.68x NAV and 18.7x 2026E EBITDA," added Berenberg.

Reporting by Iain Gilbert at Sharecast.com