Pan American Silver Corp.
Pan American Silver Corp. (NASDAQ: PAAS) is a silver mining company that focuses solely on exploration and development. In 2011, it produced almost 22 million ounces of silver. The company's primary markets are Central and South America. It also offers zinc, lead, copper, and gold, which are byproducts of its silver mining operations.
Why should investors Book Profits?
Valuation Methodology: Price/Earnings Per Share Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's FY1 trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
PAAS's share price has surged 16.10% in the past month and is currently leaning towards the mid-band of the 52-week range of USD 20.74 to USD 36.14. We have valued the stock using the Price/Earnings-based relative valuation methodology and arrived at a target price of USD 25.00.
Also, Silver Futures have moved below its crucial short-term support of 50-day SMA and taking resistance of the same for the last few trading sessions. Also, the leading momentum indicator 14-day RSI has recorded a reversal from bullish momentum and moved below 60, implying that the commodity's bullishness is exhausting.
Considering the surge in share prices in a brief span, industry lagging margins, macro headwinds, exhausting bullishness in the underlying commodity, current valuation, and associated risks, we recommend a "Sell" rating on the stock at the current price of USD 27.77, down 0.39% as of March 22, 2022, 11:20 AM PDT.
Three-Year Technical Price Chart (March 22, 2022; at 11:20 AM PDT). Analysis by Kalkine Group
* The reference data in this report has been partly sourced from REFINITIV.
* All forecasted figures and industry information have been taken from REFINITIV.