Trump/Cook, Nissan weakness, more tariffs and gold - what’s moving markets
Investing.com - Roth/MKM downgraded Avino Silver & Gold (NYSE:ASM) from Buy to Neutral on Tuesday, while simultaneously raising its price target to $3.50 from $2.75.
The research firm cited the stock’s current valuation as the primary reason for the downgrade, noting that shares appear fully valued at current trading levels despite improved fundamentals.
Roth/MKM’s decision follows a significant rally in ASM shares, which have surged more than 250% year-to-date, potentially setting the stage for profit-taking by long-term investors.
The firm’s analyst raised forward estimates for Avino Silver & Gold based on higher gold and silver price forecasts, which drove an increase in their DCF-based valuation from $2.79 to $3.46 per share.
Despite the more optimistic price target, Roth/MKM believes near-term upside could be limited as investors look to capture profits following the substantial share price appreciation seen throughout the year.
In other recent news, Avino Silver & Gold reported impressive financial results for the quarter, with revenue reaching $18.8 million, a 52% increase from the $12.4 million recorded in the same period last year. This growth was driven by stronger commodity prices and steady production levels. The company also posted a net income of $5.6 million, or $0.04 per share, a significant improvement from the previous year’s $0.6 million, or $0.00 per share. The cost of sales decreased by 18% year-over-year, benefiting from unit cost reductions and favorable currency exchange rates between the US Dollar and Mexican Peso. Additionally, Avino Silver & Gold achieved $10.6 million in mine operating earnings, highlighting their operational success. The replacement of the primary jaw crusher with minimal downtime is expected to support ongoing production capabilities. H.C. Wainwright responded to these results by raising the stock target to $2.80 from $2.20 and maintaining a Buy rating, reflecting confidence in the company’s future performance. The firm anticipates continued strong cash flow and progress on the La Preciosa project, supported by robust margins in the current metal price environment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.