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Canaccord Adams Upgrades Pan American Silver (PAAS) to Buy

November 10, 2009 12:45 PM EST
PAAS Hot Sheet
Rating Summary:
    5 Buy, 3 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Canaccord Adams upgrades Pan American Silver Corp. (Nasdaq: PAAS) from Hold to Buy. Price target increased from $26.50 to $29.50

Canaccord analyst says, "We have increased our rating to BUY based on the potential for a Q3/09 earnings beat, expected reversal on recent share price underperformance and relative valuation with upside potential. PAAS reports Q3/09 results after market close tonight (potential to exceed our estimate of $0.22 consensus of $0.21 due to potential for favourable settlement gains). Since the
announcement of the Aquiline acquisition, the shares are down 11% compared with Hecla (up 14%) and Silver Wheaton (up 3%)...We see potential for a catch-up in share price performance via a potential earnings beat, gradually improving sentiment towards the Aquiline transaction and related permitting risk (lowering our discount rate to 5% from 15% on Loma de Plate would increase our $18/oz peak silver NAV by US$2.15/share) and upside associated with the potential development of the La Preciosa silver project (initial in situ value $74 million)."

To see more analyst ratings on PAAS Click Here.


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