Analysts have raised Fresnillo’s price target to £16.26, driven by bullish views on sustained higher silver prices and improved operating outlook, though some caution that current valuations already reflect lofty silver price assumptions.
Analyst Commentary
- Bullish analysts cite a substantially improved silver price backdrop, raising expectations for Fresnillo's earnings and cash flows.
- Multiple upward price target revisions reflect increased confidence in Fresnillo’s growth trajectory and operational performance.
- Higher price expectations factor in recent positive silver price momentum, with some valuation assumptions embedding a prolonged elevated silver price environment.
- Bearish analysts express concern that Fresnillo shares are already pricing in silver above $40/oz, providing limited valuation safety and skewing risk/reward to the downside.
- Some remain cautious, downgrading on the view that despite sector tailwinds, risk of overvaluation exists and prefer to wait for a more attractive entry point.
What's in the News
- Fresnillo declared an interim dividend of 20.8 US cents per share, totaling USD 153.3 million, to be paid in September.
- Updated and reaffirmed production guidance for 2025–2027, with 2025 attributable silver expected at 47.5–54.5 moz and gold at 550–590 koz; similar ranges provided for lead and zinc production.
- Q2 2025 results showed gold production increased year-over-year to 157,735 oz, while silver, lead, and zinc production all declined compared to the prior year.
Valuation Changes
Summary of Valuation Changes for Fresnillo
- The Consensus Analyst Price Target has significantly risen from £14.56 to £16.26.
- The Consensus Revenue Growth forecasts for Fresnillo has significantly risen from -0.8% per annum to 0.9% per annum.
- The Net Profit Margin for Fresnillo has significantly risen from 29.64% to 32.85%.
Disclaimer
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