Analysts have raised their price target for Americas Gold and Silver from $5.50 to $6.17 per share. They cite improved profit margins and earnings expectations, even though the outlook for revenue growth has become more moderate.
What's in the News
- Americas Gold and Silver was added to the S&P Global BMI Index, reflecting increased market recognition (Index Constituent Adds).
- Phase 1 upgrades to increase hoisting capacity at the No. 3 Shaft in the Galena Complex were completed ahead of schedule. This has boosted production capabilities and efficiency (Product-Related Announcements).
- Metallurgical testing at the Galena Complex demonstrated high extraction rates for antimony and other metals, supporting ongoing production optimization (Product-Related Announcements).
- The company announced a 1-for-2.5 stock split effective August 26, 2025, as part of a broader share consolidation plan (Stock Splits & Significant Stock Dividends).
- Second quarter 2025 results showed a 54% increase in consolidated silver production, rising to 689,000 ounces (Announcement of Operating Results).
Valuation Changes
- Fair Value: The estimated fair value per share has increased from CA$5.50 to CA$6.17. This change reflects higher expectations for the company’s performance.
- Discount Rate: The discount rate has risen slightly to 6.75%, up from 6.64% previously.
- Revenue Growth: Projected revenue growth has decreased significantly and is now expected at 52.7% compared to the earlier forecast of 70.1%.
- Net Profit Margin: The company’s net profit margin is anticipated to nearly double, rising sharply from 15.0% to 28.3%.
- Future P/E: The future price-to-earnings ratio estimate has dropped sharply from 31.15x to 18.22x. This reflects improved earnings expectations relative to the share price.
Disclaimer
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