On Thursday, BMO Capital Markets adjusted its price target for First Majestic Silver Corp. (FR:CN) (NYSE: NYSE:AG), increasing it to Cdn$10.00, up from the previous Cdn$8.50. The firm retained its Market Perform rating on the stock. This adjustment comes after First Majestic Silver reported first-quarter earnings that fell slightly short of both BMO Capital's and the consensus estimates.
The company's earnings for the quarter were reported at a loss of Cdn$0.06 per share, compared to the anticipated Cdn$0.05 per share. Despite this, both revenue and cost of sales met the estimates provided by BMO Capital, which were set following the company's announcement of in-line production figures prior to the earnings report.
First Majestic Silver's all-in sustaining costs (AISC) for the first quarter came in at $21.53 per ounce of silver equivalent, which is an increase from $18.50 per ounce in the previous quarter. This figure also exceeds the company's guidance for the year 2024. The management team has cited the lower production volumes and the strengthening of the Mexican peso as the primary reasons for the rise in costs.
The company remains optimistic, however, with expectations to ramp up production in the second half of the year. This increase in production is anticipated to help the company meet its annual guidance targets. BMO Capital's revised price target reflects this outlook, taking into account the updated projections and the rolling forward of their financial model.
InvestingPro Insights
As First Majestic Silver Corp. (NYSE: AG) navigates through its financial year, the latest metrics from InvestingPro show a company that's been through notable price movements. The company's Market Cap stands at 2040M USD, reflecting its current valuation in the market. Despite a challenging quarter, First Majestic Silver has demonstrated resilience with a strong return over the last three months, boasting a 55.38% price total return, and an impressive six-month price total return of 53.19%. This aligns with BMO Capital Markets' positive outlook and their revised price target.
An InvestingPro Tip highlights that First Majestic Silver's liquid assets exceed its short-term obligations, suggesting a stable financial position in the near term. However, analysts do not anticipate the company to be profitable this year, which is mirrored by a negative P/E Ratio of -42.84. Nevertheless, the company operates with a moderate level of debt, which could be a mitigating factor as it aims to ramp up production and improve its financial performance in the latter half of the year.
For investors looking to dig deeper into First Majestic Silver's financial health and prospects, there are additional InvestingPro Tips available that could provide further insights. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a more comprehensive understanding of the company's trajectory. Visit https://www.investing.com/pro/AG to explore these insights and utilize the promocode for a discounted subscription.
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