H.C. Wainwright maintains Buy on Endeavour Silver stock

Published 10/04/2025, 12:28
H.C. Wainwright maintains Buy on Endeavour Silver stock

On Thursday, H.C. Wainwright affirmed a Buy rating on Endeavour Silver Corp (NYSE:EXK), a $1 billion market cap silver mining company, with a steady price target of $7.25. According to InvestingPro data, the stock currently trades at $3.69, suggesting significant upside potential based on analyst targets ranging from $5.00 to $7.25. The firm's analyst provided insights into the company's recent production performance, noting that Endeavour Silver (TSX:EDR) produced 1.9 million Silver Equivalent Ounces (SEOs) during the quarter, which represents an 18% decrease year-over-year but aligns with forecasts. This production comprised 1.2 million ounces of silver, down by 17% from the previous year, and 8,338 ounces of gold, marking an 18% year-over-year decrease. Despite the production decline, InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 2.0 and expects revenue growth of 51% in FY2025.

The reduced production was primarily due to diminished output at the Guanaceví mine, although this was somewhat mitigated by higher silver grades at the Bolañitos mine. The analyst highlighted that both mines operated according to their mine plans, and the lower production figures were due to mining in different areas of the ore body.

Looking forward, H.C. Wainwright anticipates significant production increases in the second half of 2025 and beyond. This optimistic outlook is based on the expected commissioning of the Terronera project and the potential production enhancements following the recent acquisition of Compañía Minera Kolpa S.A. The firm's analyst reiterated the Buy rating and $7.25 price target, signaling confidence in Endeavour Silver's future performance. InvestingPro subscribers can access 12 additional key insights about EXK, including detailed financial health metrics and growth projections. Get the complete analysis with InvestingPro's comprehensive research report.

In other recent news, Endeavour Silver Corp. reported an annual revenue of $217.6 million, with a net loss of $31.5 million, contrasting with a net income of $6.1 million the previous year. The company attributed the 6% increase in revenue to higher average realized prices for gold and silver, despite a decline in silver production and sales. Endeavour Silver has also announced an upsized offering of common shares, aiming to raise approximately $45 million to fund the acquisition of Compañia Minera Kolpa S.A. and its Huachocolpa Uno Mine asset for $145 million. This acquisition is intended to enhance Endeavour's production profile by about five million silver equivalent ounces.

Analyst firm Raymond (NSE:RYMD) James has initiated coverage on Endeavour Silver with an Outperform rating, citing the company's growth prospects, particularly with the Terronera Project. H.C. Wainwright maintained a Buy rating and raised the stock's price target to $7.25, reflecting confidence in the company's financial health and future projects. Endeavour Silver's expansion into Peru, including a copper purchase agreement with Versamet Royalties Corporation, is part of its broader strategy to increase production. The company has also filed a technical report on the Huachocolpa Uno Mine with the SEC, ensuring transparency and regulatory compliance.

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