In a research note JP Morgan recommended that investors buy Silver Wheaton and sell its competitor silver miner Coeur Mining (CDE) . "This is based on the idea that royalty/streaming companies will be more robust in times of weak metals prices than pure-play miners," analyst John Bridges and the JP Morgan commodities team wrote.
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"Given the uncertain and volatile outlook for the US$ and thus the gold price, we have regrouped with three conservative pair trades that we expect to be profitable in a neutral or weaker metal price environment," the analysts wrote.
TheStreet Ratings team rates SILVER WHEATON CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SILVER WHEATON CORP (SLW) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income."