H.C. Wainwright analyst Heiko Ihle has reiterated their bullish stance on MAG stock, giving a Buy rating on April 14.
Heiko Ihle has given his Buy rating due to a combination of factors including MAG Silver’s impressive production results and future guidance. The Juanicipio site has achieved a record silver recovery rate of 96.0%, alongside a strong production of silver and gold, which has been bolstered by favorable commodity pricing. This performance is expected to continue, driving significant free cash flow for the company.
Furthermore, the company’s 2025 guidance indicates robust production levels with optimized costs, supported by strategic capital investments aimed at enhancing operational efficiency. The valuation of Juanicipio at $1.91 billion, coupled with a lower-than-average discount rate, reflects the asset’s high-grade orebody and long-term production potential. Additionally, potential value creation from MAG’s exploration projects, such as Larder and Deer Trail, further supports the Buy rating, despite inherent risks like commodity price fluctuations and operational challenges.
Ihle covers the Basic Materials sector, focusing on stocks such as MAG Silver, Endeavour Silver, and Franco-Nevada. According to TipRanks, Ihle has an average return of 10.6% and a 50.71% success rate on recommended stocks.
In another report released on April 14, Scotiabank also maintained a Buy rating on the stock with a $18.50 price target.