UPDATE: Pan American Silver Overvalued, Downgraded by Goldman Sachs

Tuesday rating reports include a downgrade by Goldman Sachs analyst Andrew Quail, Moving Pan American Silver Corp

from Neutral to Sell with a price target of $10. Goldman Sachs has taken a bearish view, lowering their forecast on silver prices. The reports notes that presuming their revised forecast, PAAS will be limited in free cash flow generation, despite current performance. Quail highlights three reasons in defense of the downgrade: 1. Silver prices – more bearish due to the limited supply-side response to prices; 70% of mine supply comes as a by-product 2. Cash flow - Weak FCF generation going forward 3. Share price – unjustified outperformance and now expensive PAAS closed Monday at $15.22 and opened back up Tuesday down at the $14.80 level.