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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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Silver Wheaton
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PRODUCTEUR |
CODE : SLW.TO |
ISIN : CA8283361076 |
CUSIP : 828336107 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Silver Wheaton est une société basée au Canada. Silver Wheaton est productrice d'argent, de cuivre, d'or, de plomb, de silica et de zinc au Canada, au Mexique, au Perou, au Portugal, en Grece et en Suede, en développement de projets d'argent, de cuivre, d'or et de zinc au Canada et au Chili, et détient divers projets d'exploration au Portugal et en Argentine. Ses principaux projets en production sont ZINKGRUVAN en Suede, KENO HILL (BELLEKENO) et MINTO MINE au Canada, SAN MARTIN - LUISMIN, PEÑASQUITO, LUISMIN et G-9 CAMPO MORADO au Mexique, YAULIYACU au Perou, STRATONI en Grece et NEVES-CORVO au Portugal, ses principaux projets en développement sont PASCUA LAMA au Chili et KUTCHO CREEK au Canada et ses principaux projets en exploration sont PROMOTORIO DURANGO et MONTOROS au Mexique, ALJUSTREL au Portugal et LOMA DE LA PLATA (NAVIDAD) en Argentine. Silver Wheaton est cotée au Canada, aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 12,6 milliards CA$ (9,2 milliards US$, 8,4 milliards €). La valeur de son action a atteint son plus bas niveau récent le 09 mars 2007 à 10,01 CA$, et son plus haut niveau récent le 15 mai 2017 à 28,53 CA$. Silver Wheaton possède 441 520 000 actions en circulation. |