BMO Financial raises First Majestic Silver(FR:TSX) to $13

STA Research
by: STA Research

BMO Financial maintains the Hold rating on First Majestic Silver, and raises the target to $13 from $11.75 on the silver miner’s stock.

Based on the First Majestic Silver Corp stock forecasts from 6 analysts, the average analyst target price for First Majestic Silver Corp is CAD 16.83 over the next 12 months. First Majestic Silver Corp’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of First Majestic Silver Corp is Slightly Bearish, which is based on 4 positive signals and 6 negative signals. At the last closing, First Majestic Silver Corp’s stock price was CAD 16.43. First Majestic Silver Corp’s stock price has changed by -1.02% over the past week, +1.40% over the past month and -20.24% over the last year.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is 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.

What we don’t like:

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

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.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

 

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