Analyst Heiko Ihle of H.C. Wainwright maintained a Hold rating on MAG Silver, retaining the price target of $22.00.
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Heiko Ihle has given his Hold rating due to a combination of factors including MAG Silver’s recent financial performance and strategic positioning. The company’s income from its investment in Juanicipio has shown growth, contributing positively to its net income. However, the pending transaction with Pan American is a significant factor in maintaining a neutral stance, as it could impact the company’s future operations and financial outcomes.
Additionally, Ihle considers MAG Silver’s low-cost operations and favorable precious metal pricing as strengths that support its free cash flow. Despite these positives, the valuation of MAG’s assets, particularly the discount rate applied to Juanicipio, reflects a cautious approach. The overall NAV estimation and the potential for future growth through projects like Larder and Deer Trail are acknowledged, but risks such as commodity price fluctuations and joint venture-related uncertainties warrant a Hold rating.
In another report released today, Roth MKM also maintained a Hold rating on the stock with a $23.00 price target.