Silver Stocks: Keeping Up with Analyst Rating Changes



Recent recommendation changes

Following the recent strong run in silver (SLV), several analysts have commented on silver miners (SIL), as we’ll see in this part of the series.

RBC Capital initiated coverage on Coeur Mining (CDE) on June 21 with a “sector perform” rating and a target price of $9.

BMO Research upgraded Coeur in May 2016 to “outperform” from “market perform.” In the same report, it also upgraded Yamana Gold (AUY), Silver Wheaton (SLW), Pan American Silver, and Detour Gold (DRGDF).

On June 2, 2016, Scotia Capital reiterated its “underperform” rating for Hecla Mining (HL). In April 2016, Scotia had downgraded Hecla to “underperform” from “sector perform.” The broker has a target price of $2.25 on the stock.

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No major rating change

There haven’t been any rating changes for Tahoe Resources (TAHO) in the last few months. On June 13, 2016, Tahoe’s executive vice president and president of Canadian operations, Tony Makuch, resigned. This move was mildly negative for the stock. However, it didn’t lead to a rating change. Dundee Securities increased its price target for Tahoe from 19 Canadian dollars to 20.75 Canadian dollars. It has a “buy” rating on the stock. The broker also increased its earnings per share (or EPS) estimate for 2016 from $0.46 to $0.55.

First Majestic Silver (AG) completed a common share financing deal on May 12 where 5.3 million shares were offered for 57.5 Canadian dollars. Some brokers commented on this deal, but all of them maintained their ratings after the event. TD Securities reiterated its “buy” rating on May 13. However, it increased the target price for the stock from 16 Canadian dollars to 16.5 Canadian dollars.

RBC Capital reiterated its “sector perform” rating on Pan American Silver (PAAS) on June 13. The broker increased its target price for the stock from $12 to $15.

FBR Capital Markets also reiterated its “market perform” rating on the stock. It increased its target price from to $12 to $16.

Gold miners (GDX) will release their earnings in the next few weeks. For analysis of their latest results, be sure to watch Market Realist’s Precious Metals Mining page.

You can also read our earnings preview for gold miners, Gold Sector Earnings Preview: What to Expect in 2Q16? to seee what’s expected from these companies for the quarter.


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