Silvercorp Metals (SVM) has received a new Buy rating, initiated by BMO Capital analyst, Kevin O’Halloran.
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Kevin O’Halloran has given his Buy rating due to a combination of factors including Silvercorp Metals’ strong operational performance and strategic advancements. The company’s silver production in the second quarter was in line with expectations, despite temporary closures at the Ying mine, indicating resilience and effective management. Additionally, the reopening of previously closed areas at Ying suggests that production levels will stabilize, supporting the company’s guidance range.
Furthermore, Silvercorp’s ongoing projects in Ecuador, such as the El Domo construction and the Condor gold project, demonstrate a commitment to growth and expansion. The company’s strong balance sheet and history of maintaining solid margins also contribute to the positive outlook. These factors collectively suggest a potential re-rating opportunity as Silvercorp continues to optimize its operations and advance its projects.
O’Halloran covers the Basic Materials sector, focusing on stocks such as Fortuna Mining Corp, Aya Gold & Silver, and Equinox Gold. According to TipRanks, O’Halloran has an average return of 66.8% and a 95.31% success rate on recommended stocks.
In another report released today, Raymond James also maintained a Buy rating on the stock with a C$11.00 price target.