UPDATE: BMO Capital Markets Downgrades Pan American Silver Corp. to Underperform, Lowers PT on Low Metal Prices

In a report published Monday, BMO Capital Markets analyst Andrew Kaip downgraded the rating on

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.