BMO upgrades First Majestic Silver stock rating on valuation
Investing.com - BMO Capital upgraded First Majestic Silver Corp. (NYSE:AG) to Outperform from Market Perform and set a price target of C$35.00.
The firm views the shares as discounted compared to historical trading multiples. The stock trades at 2.2x net asset value and 10x next-twelve-month cash flow from operations at the firm’s updated commodity price deck. The company’s PEG ratio of 0.28 suggests attractive valuation relative to growth, though the stock has declined 11.7% over the past week despite posting a remarkable 176% gain over the last year.
Historical multiples for First Majestic have often exceeded 3x net asset value and 15x cash flow.
BMO Capital sees value-surfacing catalysts in 2026 including expanding processing capacity at Santa Elena and Gatos. The firm also cited evaluating restart potential at Jerritt Canyon as a catalyst. The development of newly discovered deposits at Santa Elena represents an additional catalyst for the year.
In other recent news, First Majestic Silver Corp reported impressive fourth-quarter results for fiscal year 2025, surpassing market expectations. The company achieved earnings per share of $0.30, which was a 66.67% increase over the forecasted $0.18. Revenue also exceeded expectations, reaching $463.9 million compared to the anticipated $403.71 million. For the entire year of 2025, First Majestic Silver recorded $1.26 billion in revenue and net earnings of $164.9 million, or $0.34 per share. This marks a significant improvement from 2024, where the company had $560.6 million in revenue and a net loss of $101.9 million.
Analyst firm H.C. Wainwright responded to these strong results by raising its price target for First Majestic Silver stock to $30, maintaining a Buy rating. Meanwhile, the broader mining sector faced challenges as gold prices dropped 6%, marking its longest losing streak since 2023. Silver also saw a decline of 13%, while aluminum fell more than 8%, amid concerns over potential delays in Federal Reserve interest rate cuts. These developments highlight the mixed environment for mining companies, with First Majestic Silver standing out due to its robust financial performance.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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