| Time To Buy Silver Wheaton, Says Barclays | |
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The share price of Silver Wheaton Corp. (USA) (NYSE: SLW) has appreciated 17.3 percent over the past month, from a low of $11.47 on October 1.
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Barclays’ Farooq Hamed has initiated coverage of the company with an Overweight rating and a price target of $18.
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Although the Canada Revenue Agency issue could lead to an overhang on the stock, Hamed believes that most of the “worst case scenario” associated with the tax issue is already priced in.
Analyst Farooq Hamed believes that Silver Wheaton “has a high quality stream portfolio that can grow annual earnings and cash flows organically at spot commodity prices,” while its improving balance sheet and significant available liquidity” would allow for “greater potential growth through acquisitions.”
With the current spot commodity prices and assuming that the company does not undertake any further acquisitions, Hamed expects Silver Wheaton’s underlying business to general annual EPS and CFPS growth at 3.7 percent and 3.9 percent, respectively, over the coming five years.
“Coupling this decent growth rate with an improving balance sheet that we expect will be in a net cash position by 2017, barring any further investments, we believe SLW represents an attractive option in the embattled Canadian Metals and Mining sector,” the Barclays report said.
On the other hand, Hamed does not expect a quick resolution of the Canada Revenue Agency (CRA) tax reassessment issue. However, the “worst case scenario” that the CRA would successfully reassess the company’s taxes since 2005 to the present using a higher tax rate appears to mostly have already been priced into the stock.
Latest Ratings for SLW
Date | Firm | Action | From | To |
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Oct 2015 | Barclays | Initiates Coverage on | | Overweight | Sep 2015 | BMO Capital | Downgrades | | Market Perform | Jul 2015 | RBC Capital | Maintains | | Outperform |
View More Analyst Ratings for SLW
View the Latest Analyst Ratings
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VanEck Vectors Global Alternative Energy ETF
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PRODUCER |
CODE : SLW.TO |
ISIN : CA8283361076 |
CUSIP : 828336107 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Silver Wheaton is based in Canada. Silver Wheaton produces silver, copper, gold, lead, silica and zinc in Canada, in Greece, in Mexico, in Peru, in Portugal and in Sweden, develops copper, gold, silver and zinc in Canada and in Chile, and holds various exploration projects in Argentina and in Portugal. Its main assets in production are ZINKGRUVAN in Sweden, KENO HILL (BELLEKENO) and MINTO MINE in Canada, SAN MARTIN - LUISMIN, PEÑASQUITO, LUISMIN and G-9 CAMPO MORADO in Mexico, YAULIYACU in Peru, STRATONI in Greece and NEVES-CORVO in Portugal, its main assets in development are PASCUA LAMA in Chile and KUTCHO CREEK in Canada and its main exploration properties are PROMOTORIO DURANGO and MONTOROS in Mexico, ALJUSTREL in Portugal and LOMA DE LA PLATA (NAVIDAD) in Argentina. Silver Wheaton is listed in Canada, in Germany and in United States of America. Its market capitalisation is 1.4 billions as of today (US$ 992.0 millions, € 902.8 millions). Its stock quote reached its lowest recent point on March 09, 2007 at 10.01, and its highest recent level on May 15, 2017 at 28.53. Silver Wheaton has 47 442 200 shares outstanding. |