MAG Silver, the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst Heiko Ihle from H.C. Wainwright downgraded the rating on the stock to a Hold and gave it a $22.00 price target.
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Heiko Ihle has given his Hold rating due to a combination of factors related to MAG Silver’s recent performance and strategic developments. The company’s 2Q25 production results showed a decline in silver output year-over-year, although there was growth in gold, lead, and zinc production, which highlights the asset’s diverse production capabilities. Despite the decrease in silver production, the company is expected to generate significant free cash flow in the long term, driven by strong metal pricing and operational improvements.
Additionally, the overwhelming shareholder approval for the acquisition by Pan American Silver plays a crucial role in the Hold rating. With 99.52% of votes in favor, the transaction is pending final approval, which adds a layer of uncertainty. Furthermore, the revision of the precious metal price deck reflects macroeconomic factors that have increased spot prices for gold, silver, and copper, suggesting that the current market conditions are favorable but also volatile. These elements combined lead to a cautious stance, resulting in a Hold rating for MAG Silver.
In another report released yesterday, Roth MKM also maintained a Hold rating on the stock with a $22.00 price target.