TD Securities Upgrades Pan Am Silver (PAAS) to Buy

February 21, 2014 7:51 AM EST
Get Alerts PAAS Hot Sheet
Price: $28.28 +2.02%

Rating Summary:
    8 Buy, 7 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 18 | Down: 11 | New: 19
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TD Securities upgraded Pan Am Silver (NASDAQ: PAAS) from Hold to Buy with a price target of $19.00 (from $14.00). The change follows Q4 results.

Analyst Daniel Earle said, "We have made only slight changes to our estimates, but have increased our target multiples significantly to reflect the company having swung to what we view as sustainable free cash flow after burning cash for the first three quarters of the year and multiple expansion in its peer group."

"Pan American is currently trading at 1.16x our corporate NAV and 11.6x our 2015E CFPS. These multiples are significantly below those of the silver producers in our coverage universe which trade at an average of 1.70x NAV and 12.1x 2015E CFPS. Within this group, we believe that the company’s closest peer is First Majestic Silver Corp. (FR-T), which trades at 1.28x NAV and 9.2x 2015E CFPS, although we would point out that we are forecasting First Majestic to be slightly free cash flow negative this year," he added.

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 $14.90 yesterday.


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