TD Securities cuts MAG Silver stock rating to Sell

Published 22/05/2025, 06:24
TD Securities cuts MAG Silver stock rating to Sell

On Thursday, TD Securities adjusted its stance on MAG Silver (NYSE:MAG) shares, downgrading the rating from Buy to Sell. The move comes with a slight increase in the price target to Cdn$28.57, up from the previous Cdn$28.00. This decision aligns with the recent cash/share offer from Pan American Silver Corp (NYSE:PAAS). valued at $20.54 per share USD.

The downgrade was prompted by the assessment of the current acquisition offer on the table. TD Securities analyst Wayne Lam indicated that the revised price target reflects the offer from Pan American Silver (TSX:PAAS), which was adjusted for the spot Canadian dollar to U.S. dollar exchange rate. He expressed the opinion that the offer represents an attractive opportunity for shareholders and that it is unlikely a better bid will emerge.

Lam’s analysis suggests that the likelihood of a competing offer surpassing Pan American Silver’s bid is low. Given this perspective, he recommends that investors should tender to the current offer. The endorsement to accept the bid implies that TD Securities views the deal as favorable under the current market conditions.

The new price target of Cdn$28.57 represents a modest increase from the previous target. This adjustment takes into account the exchange rate at the time of the offer, providing a direct comparison for investors considering the tender offer in Canadian dollars.

MAG Silver has not publicly responded to the downgrade or the revised price target. The market’s reaction to TD Securities’ updated guidance and the tender offer from Pan American Silver will be closely watched by investors and industry observers alike.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.