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UPDATE: BMO Capital Downgrades Pan American Silver to Underperform on Low Metal Prices

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In a report published Monday, BMO Capital Markets analyst Andrew Kaip downgraded the rating on Pan American Silver Corp. (NASDAQ: PAAS) from Market Perform to Underperform, and lowered the price target from $19.50 to $9.50.

In the report, BMO Capital Markets noted, “BMO Research has ranked 24 proposed silver mines outlined in the report titled ‘Silver Sector Analysis – Potential New Silver Mines Assessed.' In the report, BMO Research recommends that investors increase their exposure to low-cost producers with high-quality development projects due to the declining metal price environment. The decline in metal prices, in conjunction with PAAS's high all-in costs, has negatively impacted PAAS's valuation in the near term, with the company currently trading at 3.9x its 10% nominal NPV estimate. A lack of clarity on growth is also expected to weigh on PAAS over the medium term.”

Pan American Silver Corp. closed on Friday at $11.64.

Latest Ratings for PAAS

DateFirmActionFromTo
Feb 2015JP MorganMaintainsNeutral
Feb 2015CIBCDowngradesSector PerformUnderperform
Jan 2015JP MorganMaintainsNeutral

View More Analyst Ratings for PAAS
View the Latest Analyst Ratings

Posted-In: Andrew Kaip BMO Capital MarketsAnalyst Color Downgrades Analyst Ratings

 

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