Wheaton Precious Metals (WPM) Rallies 6.2% on Streaming Model Momentum, Analyst Upgrades

Shares of Wheaton Precious Metals (WPM) climbed to their highest level since September 2025, surging 1.98% intraday and rising 6.20% over four consecutive days. The stock’s recent momentum reflects renewed investor confidence in the company’s cash-generating streaming model and favorable market sentiment toward precious metals. Analysts highlight the firm’s ability to secure long-term production agreements and maintain low operational costs as key drivers of its appeal in the mining sector.

Recent analyst activity has reinforced optimism, with several firms revising price targets upward in late August and September. Peel Hunt raised its target to C$161.00, while CIBC and Canaccord Genuity also adjusted estimates higher. However, UBS Group downgraded its rating to “Hold,” signaling caution amid broader market uncertainties. The average analyst price target of C$128.17 contrasts with the DCF model’s suggestion that WPM may be trading above intrinsic value, underscoring valuation debates among investors.

The company’s financial strategy further supports its market position. A recent quarterly dividend of $0.165 per share, yielding 0.4% annually, underscores its commitment to shareholder returns while maintaining a conservative payout ratio. WPM’s business model, which focuses on acquiring streaming agreements for gold, silver, and cobalt without direct mining operations, offers scalable growth and reduced capital intensity. Diversified geographic exposure and long-term contracts also mitigate single-market risks, enhancing cash-flow stability.

Despite these strengths, risks remain. Regulatory shifts, geopolitical tensions, and commodity price volatility could disrupt operations or margins. Analysts caution that the disparity between bullish growth assumptions and valuation skepticism highlights the need for careful risk assessment. Investors are advised to monitor WPM’s ability to secure new deals and navigate macroeconomic challenges while balancing optimism with caution in the current market environment.