Berenberg trims target price on Wheaton Precious Metals

(Sharecast News) - Analysts at Berenberg reiterated their 'buy' rating on Wheaton Precious Metals on Tuesday, trimming their target price from 11,900p to 11,700p but stressing that the streaming group remains in a league of its own compared with peers.

Berenberg said recent investor feedback suggested some shareholders were looking elsewhere for stronger growth or value, prompting a detailed review of Wheaton's portfolio, growth options and valuation against FrancoNevada, Royal Gold, Triple Flag and OR Royalties.

The German bank argued Wheaton's scale and consistency set it apart, noting its goldequivalent output was around 900,000 ounces, roughly twothirds larger than its closest peer, yet still offers volume growth of 40% between 2026 and 2030 - broadly in line with the sector.

Berenberg highlighted Wheaton's ability to secure both smaller and largescale streaming deals, supported by around $3bn of annual free cash flow and what it sees as an underlevered balance sheet. It also expects a major copper capex cycle to create further preciousmetals streaming opportunities not yet reflected in estimates, pointing to February's $4.3bn Antamina deal as evidence of the group's firepower.

On valuation, Berenberg said Wheaton trades at a 15-17x enterprise value/underlying earnings ratio, below its sixyear average of around 23x, and at a discount to its largest peer on a marketcaptoproduction basis.

Berenberg added that the shares offer compelling value given Wheaton's scale, quality, growth trajectory and cashflow generation, supporting its decision to maintain its 'buy' recommendation despite the small targetprice cut.

Reporting by Iain Gilbert at Sharecast.com