Fresnillo downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley downgraded Fresnillo (FNLPF) to Underweight from Equal Weight with a price target of 920 GBp, up from 870 GBp. After a steep 2025 re-rating, the firm now sees a negative risk-reward skew in Fresnillo shares, which are pricing in a silver price of over $40/oz through perpetuity, and this leaves little valuation safety buffer, the analyst tells investors in a research note. The backdrop for silver has substantially improved, but the firm prefer to wait for a better entry point with a more favorable upside skew, Morgan Stanley added.