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FBR Capital Raises Price Target on Pan American Silver (PAAS) to $16 Following 1Q Beat

May 16, 2016 2:15 PM EDT
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Price: $17.82 --0%

Rating Summary:
    8 Buy, 7 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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FBR Capital reiterated a Market Perform rating on Pan American Silver (NASDAQ: PAAS), and raised the price target to $16.00 (from $12.00), following the company's 1Q earnings report. PAAS reported an EBITDA beat with EBITDA of $39.1M, versus the consensus of $27.5M. Pan American maintained all 2016 production guidance, and expectations for cash costs and AISCSOS. The company also maintained its quarterly dividend of $0.0125 per share.

Analyst Lucas Pipes commented, "We are raising our price target and estimates for Pan American Silver following the company’s 1Q beat last week. The company reported 1Q EBITDA of $39.1M, versus the consensus of $27.5M, driven by higher-than-anticipated sales volumes, as well as sharply lower costs below current full-year 2016 guidance. AISCSOS performed strongly despite the company citing “lower by-product credits and higher sustaining capital costs,” with the latter up 39% YOY primarily due to higher sustaining capital costs due to the leach pad expansion at Dolores. Altogether, Pan American maintained all 2016 guidance, including production and costs, and maintained its sustaining and development capital guidance. The company reported that the La Colorada expansion and Dolores expansion both remained on budget and on schedule. La Colorada continues to expect to increase production to 1,800 Mt per day by 2017-end, while at Dolores, Pan American expects to reach full capacity at the pulp agglomeration plant and underground operations, also by 2017-end. Altogether, we are positive on the company’s strong 1Q results, especially on costs, and maintain our Market Perform rating on the shares' valuation primarily, with a revised price target of $16, up from $12."

For an analyst ratings summary and ratings history on Pan Am Silver click here. For more ratings news on Pan Am Silver click here.

Shares of Pan Am Silver closed at $15.65 yesterday.



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