2023-04-12 15:23:49 ET
Wheaton Precious Metals ( NYSE: WPM ) +2.3% in Wednesday's trading to its highest level in nearly a year as Scotiabank resumes coverage with a Sector Outperform rating and $60 price target, saying strong cash flow growth should lead to a dividend increase.
Scotiabank's Tanya Jakusconek forecasts strong production growth, peaking at ~1M gold equivalent oz in 2027, and sustainable annual operating cash flow of $800M-$1B over the next five years, resulting in higher dividends; a ~17% increase from current levels in "reasonable" in the next 12-18 months, the analyst said.
"We believe strong management combined with a high-quality asset base, growing production profile (50%-plus growth) and dividend, and robust balance sheet (for transactions), should be a recipe for success," Jakusconek wrote, adding exploration and expansion on existing assets provide further upside optionality.
Wheaton Precious Metals ( WPM ) is "a solid streamer that deserves more attention," Fun Trading writes in an analysis published recently on Seeking Alpha .
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Wheaton Precious Metals wins buy rating at Scotiabank with higher dividend seen