Analyst Actions: RBC Sets Outperform Rating, $43 Price Target on Silver Wheaton
RBC has initiated coverage of Silver Wheaton Corp. (SLW.TO) with an outperform rating and $43 price target, the Financial Post reports.
Analyst Dan Rollins called the company, a pure play silver mining company, "a cash flow machine" that benefits from having a relatively fixed cost structure.
âSilver Wheaton is a unique precious metal investment vehicle as it provides direct leverage to silver without exposing investors to the operating and capital cost risks associated with its producing peers,â Rollins said in a note.
The company also has a strong balance sheet, with $1.4-billion in liquidity and another $2.6-billion in forecast free cash flow estimated to come through 2016.
He thinks the company could be an acquisition target and foresees further hikes in its dividend.
Silver Wheaton is currently down 14 cents, or 0.5%, at $26.79.
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