Leading International Investment Research, Edison Investment Research

Edison Investment Research

Leading International Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Equity Bottom-Up

Wheaton Precious Metals / Equity Bottom-Up

Although below the levels of Q1 – unsurprisingly, given the emergence of the worst manifestations of the coronavirus during the quarter – Wheaton’s Q2 results were nevertheless materially above our expectations, as all six of its partners’ disrupted operations returned to production, to a greater or lesser extent, during the period. As a result, EPS that was almost identical to Q120 (which was largely unaffected by COVID-19). In conjunction with the strength of precious metals since our last note, this has caused us to upgrade our EPS forecasts for both FY20 and FY21 by 40% and 58%, respectively.

Although below the levels of Q1 – unsurprisingly, given the emergence of the worst manifestations of the coronavirus during the quarter – Wheaton’s Q2 results were nevertheless materially above our expectations, as all six of its partners’ disrupted operations returned to production, to a greater or lesser extent, during the period. As a result, EPS that was almost identical to Q120 (which was largely unaffected by COVID-19). In conjunction with the strength of precious metals since our last note, this has caused us to upgrade our EPS forecasts for both FY20 and FY21 by 40% and 58%, respectively.

Wheaton Precious Metals  - Barely missing a beat

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Our outlook remains bullish and we continue to believe that the path of least resistance remains higher for global equities (MSCI ACWI). As long as the MSCI ACWI (ACWI-US), ACWI ex-US (ACWX-US), EM (EEM-US), and EAFE (EFA-US) are above their respective intermediate-term support levels we believe a positive outlook is warranted. Support levels to watch include $75 on ACWI-US, $44 on ACWX-US, $41 on EEM-US, and $60 on EFA-US. We recap significant technical levels across major markets and highlight specific opportunities within the Technology and Materials Sectors.

Our outlook remains bullish and we continue to believe that the path of least resistance remains higher for global equities (MSCI ACWI). As long as the MSCI ACWI (ACWI-US), ACWI ex-US (ACWX-US), EM (EEM-US), and EAFE (EFA-US) are above their respective intermediate-term support levels we believe a positive outlook is warranted. Support levels to watch include $75 on ACWI-US, $44 on ACWX-US, $41 on EEM-US, and $60 on EFA-US. We recap significant technical levels across major markets and highlight specific opportunities within the Technology and Materials Sectors.

Global Equity Strategy: Bullish Outlook Intact

We continue to have a bullish outlook and we believe the path of least resistance remains higher. Perhaps the most important thing which supports our bullish outlook is the continued lack of breakdowns on all S&amp;P 500 Sectors and all the major averages. In today’s report we highlight attractive Groups and stocks within Materials: Copper, Gold, Silver, Platinum, and Uranium Mining.

We continue to have a bullish outlook and we believe the path of least resistance remains higher. Perhaps the most important thing which supports our bullish outlook is the continued lack of breakdowns on all S&amp;P 500 Sectors and all the major averages. In today’s report we highlight attractive Groups and stocks within Materials: Copper, Gold, Silver, Platinum, and Uranium Mining.

U.S. Equity Strategy: Upgrading Materials To Overweight

With the S&amp;P 500 breaking above the June highs and the Russell 2000 bullishly inflecting topside a ~1-month base, it signals a continuation of the uptrends that began in March... see charts below. Therefore, we continue to have a bullish outlook and we believe the path of least resistance remains higher. In today’s report we highlight attractive Groups and stocks within Health Care and Materials: Biotech, Large-Cap, Biotech, Mid-Cap, Gold, Western Hemisphere, Small-Cap, and Silver, Platinum.

With the S&amp;P 500 breaking above the June highs and the Russell 2000 bullishly inflecting topside a ~1-month base, it signals a continuation of the uptrends that began in March... see charts below. Therefore, we continue to have a bullish outlook and we believe the path of least resistance remains higher. In today’s report we highlight attractive Groups and stocks within Health Care and Materials: Biotech, Large-Cap, Biotech, Mid-Cap, Gold, Western Hemisphere, Small-Cap, and Silver, Platinum.

U.S. Equity Strategy: Bullish Outlook Intact

After an exceptional Q419, WPM’s operational performance moderated in Q120, but was nevertheless robust within the broader macro-environment with underlying net earnings during the quarter within 2.6% of our prior forecasts. They would have exceeded our forecasts (by 6.0%) had it not been for a rare (albeit non-cash) tax charge relating to a reversal of deferred income tax assets. In the wake of Q120 results, we have reduced our precious metals price expectations for the balance of FY20 fractionally and our production expectations by 5koz AuE (ie <1%). However, these changes are more than balanced by a lower anticipated interest charge for the remainder of the year, such that our adjusted EPS forecast for FY20 has increased by 1.9c, from 84c to 85.9c. Note that, on its current trajectory, there is a real possibility that WPM could become net debt free in a year’s time, which could presage a change in its dividend policy.

After an exceptional Q419, WPM’s operational performance moderated in Q120, but was nevertheless robust within the broader macro-environment with underlying net earnings during the quarter within 2.6% of our prior forecasts. They would have exceeded our forecasts (by 6.0%) had it not been for a rare (albeit non-cash) tax charge relating to a reversal of deferred income tax assets. In the wake of Q120 results, we have reduced our precious metals price expectations for the balance of FY20 fractionally and our production expectations by 5koz AuE (ie 

Brazil

Wheaton Precious Metals Corp. operates as a precious metals streaming company. The Company focuses on gold and silver projects. Wheaton Precious Metals serves customers worldwide.

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Wheaton Precious Metals (WPM CN)

Wheaton Precious Metals - Barely missing a beat

Although below the levels of Q1 – unsurprisingly, given the emergence of the worst manifestations of the coronavirus during the quarter – Wheaton’s...

Edison Investment Research

Global Equity Strategy: Bullish Outlook Intact

Our outlook remains bullish and we continue to believe that the path of least resistance remains higher for global equities (MSCI ACWI). As long as...

Vermilion Research

U.S. Equity Strategy: Upgrading Materials To Overweight

We continue to have a bullish outlook and we believe the path of least resistance remains higher. Perhaps the most important thing which supports...

Vermilion Research

U.S. Equity Strategy: Bullish Outlook Intact

With the S&P 500 breaking above the June highs and the Russell 2000 bullishly inflecting topside a ~1-month base, it signals a continuation of...

Vermilion Research

Wheaton Precious Metals - Forging ahead

After an exceptional Q419, WPM’s operational performance moderated in Q120, but was nevertheless robust within the broader macro-environment with...

Edison Investment Research

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