H.C. Wainwright raises American Silver price target to $1.00

Published 28/03/2025, 12:30
H.C. Wainwright raises American Silver price target to $1.00

On Friday, H.C. Wainwright adjusted its outlook on American Silver Corp. (NYSE:USAS), increasing the price target to $1.00 from the previous $0.90, while reaffirming a Buy rating on the company’s stock. Currently trading at $0.55, the stock has shown remarkable momentum with a 150% return over the past year. According to InvestingPro data, the stock is trading near its 52-week high of $0.60.

The price target revision comes after American Silver reported annual revenues of $100.2 million, resulting in a net loss of $48.9 million, or ($0.17) per share. These figures compare to the 2023 reported revenue of $95.2 million and a net loss of $38.2 million, or ($0.16) per share. Despite the company’s revenue falling slightly short of H.C. Wainwright’s forecast of $105.0 million, the firm’s financial results were supported by higher realized silver prices throughout the year. InvestingPro analysis indicates the company maintains a moderate debt level, with a debt-to-equity ratio of 0.84.

The positive impact of silver pricing was somewhat counterbalanced by decreased grades of silver, lead, and zinc. H.C. Wainwright’s analysts believe that American Silver is well-positioned financially to enhance and expand its operations over the coming years. This confidence is partly based on the company’s reported cash and cash equivalents, which stood at $20.0 million, a significant increase from the $2.1 million recorded at the end of the fourth quarter of 2023.

The analyst’s statement highlighted the company’s financial health and the potential for growth, stating, "Importantly, we believe that USAS is properly funded to scale and improve its operations over the intermediate-term." The firm’s analysis suggests that the higher cash reserves provide a solid foundation for American Silver’s operational improvements and scaling efforts.

The updated price target reflects H.C. Wainwright’s continued endorsement of American Silver Corp. shares, with the firm standing by its Buy rating and signaling a positive outlook for the company’s future performance in the market.

In other recent news, H.C. Wainwright adjusted its price target for American Silver Corp. to $0.90 from the previous target of $1.00, while maintaining a Buy rating on the stock. This revision follows recent updates from Americas Gold and Silver, the parent company of American Silver Corp., concerning ongoing work programs at the Galena Complex. The company completed the Galena consolidation transaction in the fourth quarter of 2024 and identified hoisting capacity as a primary limitation. To address this, significant upgrades to the #3 hoist, the main production hoist, are planned, with completion expected in the fourth quarter of 2025.

Additionally, American Silver Corp. has invested in new underground mobile equipment, including Load-Haul-Dump machines and haul trucks, to enhance productivity. The delivery and commissioning of this equipment are expected in the first and second quarters of 2025, respectively. The company has also initiated a metallurgical test program to improve concentrate sales by testing drill hole pulps from previous silver-copper vein intersections. These developments are part of the company’s efforts to optimize the recovery of silver, copper, antimony, and gold.

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