Americas Gold and Silver, the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst Heiko Ihle from H.C. Wainwright reiterated a Buy rating on the stock and has a $1.30 price target.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Heiko Ihle has given his Buy rating due to a combination of factors including significant production growth and strategic development plans at Americas Gold and Silver. The company’s recent 2Q25 production results showed a substantial increase in gold output, with notable improvements at both the Galena and Cosalá sites. This growth is attributed to effective capital deployment and a strong focus on development, particularly the transition into Zone 120 at El Cajon, which is expected to be a key area of future growth.
Furthermore, Ihle’s valuation of the company is based on a discounted cash flow analysis, applying an 8.0% discount rate for Cosalá and Galena, and a 15.0% rate for Relief Canyon. The use of a 1.5x NAV multiple suggests confidence in the company’s asset potential. The analyst also highlights management’s capability to enhance economic returns, supported by recent site visits and expected updates on mineral resources. Despite potential risks such as commodity price fluctuations and operational challenges, the company is seen as well-positioned to leverage its assets and capitalize on favorable market conditions.
According to TipRanks, Ihle is a top 100 analyst with an average return of 23.9% and a 61.05% success rate. Ihle covers the Basic Materials sector, focusing on stocks such as Integra Resources Corp, Vista Gold, and Largo Resources.