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

Ahead of Wheaton’s (WPM’s) Q320 results, which are scheduled to be released on 9 November, we have refined our quarterly forecasts for the remainder of the year to take into account both updated precious metals prices and also the apparent delays in hitherto furloughed mines returning to pre-coronavirus levels of production. As a result, we have reduced our silver and gold production forecasts for Q320 by 11.0% and 5.1%, respectively, and our EPS forecast by 2.6c per share (or 7.5%), although this follows a 40% uplift in our forecasts after the Q220 results were announced in August. As a result, our FY20 forecast still remains close to the middle of the range of analysts’ expectations (see Exhibit 2). Our FY21 and longer-term forecasts remain, to all intents and purposes, intact however, as does our valuation.

Ahead of Wheaton’s (WPM’s) Q320 results, which are scheduled to be released on 9 November, we have refined our quarterly forecasts for the remainder of the year to take into account both updated precious metals prices and also the apparent delays in hitherto furloughed mines returning to pre-coronavirus levels of production. As a result, we have reduced our silver and gold production forecasts for Q320 by 11.0% and 5.1%, respectively, and our EPS forecast by 2.6c per share (or 7.5%), although this follows a 40% uplift in our forecasts after the Q220 results were announced in August. As a result, our FY20 forecast still remains close to the middle of the range of analysts’ expectations (see Exhibit 2). Our FY21 and longer-term forecasts remain, to all intents and purposes, intact however, as does our valuation.

Wheaton Precious Metals - Q320 earnings expectation refinements

On Monday, Wheaton (WPM) announced its intention to seek a listing of its shares on the main market of the London Stock Exchange (LSE). The company is not intending to raise any new capital and will be retaining its primary listing on the TSX and its dual listing on the NYSE. Nevertheless, the listing will bring one of the world's largest dividend paying precious metal companies to the LSE by end-Q420 (subject to required regulatory approvals, including publication of a prospectus etc).

On Monday, Wheaton (WPM) announced its intention to seek a listing of its shares on the main market of the London Stock Exchange (LSE). The company is not intending to raise any new capital and will be retaining its primary listing on the TSX and its dual listing on the NYSE. Nevertheless, the listing will bring one of the world's largest dividend paying precious metal companies to the LSE by end-Q420 (subject to required regulatory approvals, including publication of a prospectus etc).

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

United States

Wheaton Precious Metals Corp. operates as a precious metals streaming company. The Company purchases silver and gold production from mines that it does not owns and operates. Wheaton Precious Metals serves customers worldwide.

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Wheaton Precious Metals (WPM US)

Wheaton Precious Metals - London calling

On Monday, Wheaton (WPM) announced its intention to seek a listing of its shares on the main market of the London Stock Exchange (LSE). The company...

Edison Investment Research

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

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Wheaton Precious Metals - Q320 earnings expectation refinements

Ahead of Wheaton’s (WPM’s) Q320 results, which are scheduled to be released on 9 November, we have refined our quarterly forecasts for the...

Edison Investment Research

Wheaton Precious Metals - London calling

On Monday, Wheaton (WPM) announced its intention to seek a listing of its shares on the main market of the London Stock Exchange (LSE). The company...

Edison Investment Research

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