Pan American Silver Gets a Buy Rating from B.Riley FBR

By Carrie Williams

B.Riley FBR analyst Lucas Pipes maintained a Buy rating on Pan American Silver (NASDAQ: PAAS) today and set a price target of $21. The company’s shares closed yesterday at $16.18.

Pipes observed:

“Midday on January 11, 2018, Pan American released preliminary Q4 results along with a three- year outlook (through 2020). Having updated our model with the new expected costs and production figures, along with refreshed metal pricing for Q4’s spot pricing, we found the update to be positive. The combination of the announced 6.6Moz of silver production in the fourth quarter (compared to our expectation of 6.2Moz) and stronger than expected spot prices, increased our anticipated Q4 EBITDA to $78, from $72M. Cash costs came in slightly higher than we anticipated at $3.18/oz, which is still impressive and placed FY17 cash costs at $4.55/oz. Looking ahead, we saw most guidance as positive, as PAAS looks to ramp production faster than we anticipated, expecting 30.5-33Moz of silver production in 2020.”

According to, Pipes is a 4-star analyst with an average return of 10.1% and a 65.2% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Peabody Energy Corporation Comm, Newmont Mining Corporation, and Novagold Resources Inc New.

Currently, the analyst consensus on Pan American Silver is Strong Buy and the average price target is $21.20, representing a 31.0% upside.

In a report issued on January 8, Scotiabank also reiterated a Buy rating on the stock with a $21 price target.

Pan American Silver’s market cap is currently $2.48B and has a P/E ratio of 26.52. The company has a book value ratio of 1.6879.

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Pan American Silver Corp. is a silver mining company, which provides investors with the best investment opportunity to gain real exposure to silver prices. It engages in silver mining and related activities, including exploration, mine development, extraction, processing, refining and reclamation.