UPDATE: Credit Suisse Upgrades Silver Wheaton to Outperform on Gold Exposure Increase

Credit Suisse upgraded Silver Wheaton

from Neutral to Outperform and raised the price target from $47.00 to $49.00. Credit Suisse noted, "SLW announced a binding term sheet to acquire two gold streams from Vale. … Doubling down on gold exposure. SLW estimates revenues generated from gold over the next five years will increase from ~12% to a peak of ~25%. … Recent underperformance in the shares vs. silver price (-9% on 3Mth basis) provides a compelling entry point in the shares given our view that SLW warrants a premium valuation due to its above average growth profile, fixed-cost structure, and strong liquidity position." Silver Wheaton closed at $36.79 on Wednesday.