Pan American Silver stock price target lowered to $36 by Scotiabank

Investing.com - Scotiabank has lowered its price target on Pan American Silver (NYSE:PAAS) to $36.00 from $36.50 while maintaining a Sector Outperform rating. According to InvestingPro data, PAAS currently trades near its 52-week high of $35.00, with the stock showing remarkable strength through a 77% return over the past year. The company maintains a perfect Piotroski Score of 9, indicating exceptional financial strength.

The adjustment follows Pan American’s completion of its acquisition of MAG Silver, a strategic expansion of its silver portfolio. The total deal value reached approximately $2.55 billion, higher than the originally estimated $2.1 billion, consisting of $500 million in cash and about 60.2 million PAAS shares. With a current market capitalization of $12.3 billion and strong liquidity metrics, including a current ratio of 3.05, the company appears well-positioned to integrate this acquisition.

The transaction adds a 44% joint venture interest in the Juanicipio silver mine in Zacatecas, Mexico, which is operated by Fresnillo. Pan American also acquired 100% ownership and earn-in of the Larder exploration project and a 100% earn-in interest in the Deer Trail project.

This acquisition strengthens Pan American’s position as a top-tier silver producer, adding approximately 6 million ounces of attributable silver production annually (about 9 million ounces silver equivalent) and approximately 112 million ounces of attributable silver to its resource and reserve base.

At spot prices, the deal marginally increases Pan American’s silver pro forma revenue exposure from approximately 24% to 26% in 2026, enhancing its leverage to spot silver prices, according to Scotiabank. InvestingPro analysis reveals strong fundamentals with revenue growth of 21% and EBITDA of $1.25 billion in the last twelve months. For deeper insights into PAAS’s valuation and growth prospects, including 13 additional ProTips, check out the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Pan American Silver Corp . reported impressive financial results for the second quarter of 2025, with earnings per share reaching $0.43, surpassing analyst expectations of $0.40. The company also achieved record revenue of $811.9 million, exceeding the anticipated $794.94 million. Additionally, Pan American Silver completed its acquisition of MAG Silver Corp., a deal valued at US$500 million in cash and approximately 60.2 million Pan American shares. This acquisition adds a 44% joint venture interest in the Juanicipio silver mine in Zacatecas, Mexico, to Pan American’s portfolio. The transaction was finalized after receiving approval from Mexican regulators, marking the last regulatory requirement for the deal. BMO Capital responded by raising its price target for Pan American Silver to C$45.00 from C$38.00, maintaining a Market Perform rating. The acquisition is expected to increase Pan American’s silver production by about 22%, adding approximately 5 million ounces per annum. These recent developments highlight significant growth and expansion for Pan American Silver.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.