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Investing.com - H.C. Wainwright raised its price target on First Majestic Silver (NYSE:AG) to $17.50 from $14.00 on Friday, while maintaining a Buy rating on the stock. The stock has shown remarkable momentum, gaining over 150% year-to-date and currently trading near its 52-week high of $14.73. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with technical indicators suggesting overbought conditions.
The firm cited the company’s strong production results, with First Majestic producing 7.7 million Silver Equivalent Ounces (SEOs) during the quarter, representing a 39% increase year-over-year and slightly exceeding analyst estimates. This production growth has contributed to the company’s robust revenue growth of 61.34% over the last twelve months, as reported by InvestingPro.
The production growth was primarily attributed to First Majestic’s recent acquisition of a 70% ownership stake in the Cerro Los Gatos mine, which contributed to the company’s silver production of 3.9 million ounces, a 96% increase compared to the same period last year.
H.C. Wainwright also highlighted continued production improvements at the San Dimas mine, where both throughput and silver grades increased during the quarter, despite declines in gold, zinc, and lead production across the company’s operations.
The higher price target reflects an increased NAV multiple from 2.0x to 2.5x, which H.C. Wainwright justified based on current commodity prices and ongoing interest in mergers and acquisitions for producing assets in the sector. With a market capitalization of $6.72 billion and analysts expecting continued sales growth, First Majestic remains a closely watched player in the silver mining sector.
In other recent news, First Majestic Silver Corp. reported record silver production in the third quarter, achieving 7.7 million silver equivalent ounces. This production included 3.9 million ounces of silver, marking a record quarter for the company. Additionally, First Majestic announced significant silver and base metal mineralization findings at its Los Gatos Silver Mine in Chihuahua, Mexico. The exploration program revealed high-grade intercepts across three zones, which were not previously included in the company’s year-end mineral estimates.
TD Securities upgraded First Majestic Silver’s stock rating from Hold to Buy, citing improving fundamentals due to new discoveries and planned expansions at its Santa Elena mine and Gatos Silver operations. The firm also significantly raised its price target to C$22.00 from C$14.00. BMO Capital adjusted its price target on the company to C$21.00 from C$18.50, maintaining a Market Perform rating. H.C. Wainwright also increased its price target to $14.00 from $12.75, following an analyst tour of the company’s facilities, while maintaining a Buy rating. These developments reflect a positive outlook from various analysts on First Majestic’s operational and exploration activities.
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