Several analysts provide price targets, buy or sell recommendations and other salient analysis results free of charge through Yahoo.com. We have been keeping track of this data for some time now and have summarized our data in monthly reports. This article provides our September update for silver miners. Comparisons will be made to the data given in our August edition. We would like to point out that most companies considered for this article are covered by more analysts than reported in our table. This article only considers analyst reports available through yahoo.com.
This reports includes the following silver miners in alphabetical order: Coeur Mining (NYSE:CDE), Endeavour Silver (NYSE:EXK), First Majestic Silver (NYSE:AG), Fortuna Silver Mines (NYSE:FSM), Hecla Mining (NYSE:HL), Pan American Silver (NASDAQ:PAAS), Silver Standard (NASDAQ:SSRI), Silvercorp Metals (NYSE:SVM) and SilverCrest Mines (NYSEMKT:SVLC).
The table below summarizes our data. The first three columns list the company name, ticker symbol and share price at the time of writing. Price targets (low, median and high) are listed in the following three columns. These targets are followed by a column giving the number of analysts providing data to Yahoo.com and the mean recommendation given by these analysts ranging from 1.0 (strong buy) to 5.0 (sell). This concludes the data sourced directly from Yahoo.com.
The following columns are colored in light green and contain results derived from the source data. These data points are given in percentages related to the share price at the time of writing. The column titled "median-price" gives the difference between the share price and the median target price. The column titled "high-low" gives the difference between the high and the low target. The last four columns titled "target change" document the changes in price targets since the August report with the last columns giving the average change over the low, median and high price targets.
Values in column "median-price" can give some indication on the potential of a stock. Shares trading significantly below the median price target can be viewed as having a greater potential than shares trading close to this target. This way of thinking does not apply for companies that have had significant events moving the share price in recent times since analysts will take their time to update their targets accordingly.
A diagram visualizing this difference between the medium price target and the current share price is given below. Applying the logic outlined above would indicate the greatest potential for First Majestic Silver and SilverCrest. At the other end of the spectrum Endeavour Silver is trading above the median price target.
Unchanged from last month analysts seem to disagree most on Endeavour Silver and Coeur Mining. Column "high-low" measures this difference between the high and the low target and represents a measure for the divergence in analyst opinions. Very little disagreement can be observed for Fortuna Silver and SilverCrest. The diagram below illustrates our data.
Half the monitored price targets were actually lifted in the past month, while the other half was cut and Hecla Mining's targets remained unchanged. On average targets were reduced by just 3.8% during the past month. Column "target change average" lists the average change in price targets and the diagram below illustrates the results.
The final diagram illustrates column "Recommendation" from the table above and shows that analysts are still liking First Majestic best, ahead of SilverCrest and Fortuna Silver Mines. The least attractive of the bunch, at least in the analysts' minds, seem to be Coeur Mining and PanAmerican Silver. This diagram is practically unchanged from last month.
Our pick of the month
First Majestic Silver seems to be the best liked silver stock by analysts, yet again. We are finding it hard to disagree.
Disclosure: I am long AG, EXK, SVLC, HL. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.