First Majestic Silver (AG) PT Raised to $17.50 at H.C. Wainwright

H.C. Wainwright analyst Heiko Ihle raised the price target on First Majestic Silver (NYSE: AG) to $17.50 (from $14.00) while maintaining a Buy rating.

The analyst commented: "During the quarter, the company produced 7.7M Silver Equivalent Ounces (SEOs) (+39% YoY), slightly above our estimates. This total was based on 3.9M ounces (oz) of silver (+96% YoY), 35,681oz of gold (-15% YoY), 13.9M pounds (lbs) of zinc (-14% QoQ), and 7.7Mlbs of lead (-15% YoY). In short, the aforementioned production increase was mostly based on AG's recent acquisition of its 70% ownership in the Cerro Los Gatos mine. We also highlight the continued production increase from San Dimas and emphasize that throughput and silver grades from the site both increased. In our view, management has successfully positioned the company to further capitalize on current commodity pricing through the acquisition of Cerro Los Gatos amid general enhancements to AG's asset base. We reiterate our Buy rating on AG as we increase our PT to $17.50 from $14.00. Our higher PT is once again driven by an increased NAV multiple (now 2.5x vs. prior: 2.0x) given current commodity prices and ongoing interest in M&A for producing assets."

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