Analysts rate Fortuna Silver Mines Inc.(FVI:TSX) with a Buy rating and $6 target

by: Gillian Lawrence
Fortuna Silver Mines Inc.

Analysts rate Fortuna Silver Mines Inc with a consensus Buy rating and a 12-month average target price of $5.91 per share.

This week National Bank of Canada maintained the Sector Perform rating for Fortuna Silver Mines Inc. and lowered the target price to $4.25 from $4.50 on the company’s stock.

Based on the Fortuna Silver Mines Inc stock forecasts from 6 analysts, the average analyst target price for Fortuna Silver Mines Inc is CAD 5.91 over the next 12 months. Fortuna Silver Mines Inc’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Fortuna Silver Mines Inc is Slightly Bullish , which is based on 8 positive signals and 4 negative signals. At the last closing, Fortuna Silver Mines Inc’s stock price was CAD 3.25Fortuna Silver Mines Inc’s stock price has changed by -12.63% over the past week, -5.52% over the past month and -37.14% over the last year.

About Fortuna Silver Mines Inc (FVI:CA:TSX)

Fortuna Silver Mines Inc. engages in the acquisition, exploration, and mining of precious and base metal deposits in Argentina, Burkina Faso, Mexico, Peru, and Côte d’Ivoire. It holds interest in the Caylloma silver, lead, and zinc mine located in southern Peru; the San Jose silver and gold mine situated in southern Mexico; the Lindero gold project located in Argentina; Yaramoko gold mine situated in south western Burkina Faso; and Séguéla gold mine located in south western Côte d’Ivoire. The company was formerly known as Fortuna Ventures Inc. and changed its name to Fortuna Silver Mines Inc. in June 2005. Fortuna Silver Mines Inc. was incorporated in 1990 and is based in Vancouver, Canada.

 

Most Recent Analyst Ratings for Fortuna Silver Mines:

News:

Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) Recently announced the Paul Criddle’s resignation from the position of Chief Operating Officer – West Africa, which will be effective on September 30, 2022. Mr. Criddle disclosed  his resignation due to personal matters  and asserts he stay on  as a senior advisor to  Fortuna  until the construction of the Séguéla Mine in Cote d´Ivoire is complete. Mr. Criddle  has been at the company since July 2, 2021, after the company completed it’s purchase of Roxgold Inc.

 

 

What we like:

Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Disclaimer

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