H.C. Wainwright analyst Heiko Ihle reiterated a Buy rating on MAG Silver Corp (MAG) today and set a price target of $16.50. The company’s shares closed last Monday at $12.44, close to its 52-week high of $12.95.
Ihle commented:
“We note that MAG received no revenues in either quarter due to the current non-producing nature of the firm and the profitability of firm is therefore somewhat irrelevant for now. The narrower net loss was due to a $0.5M equity gain pick-up from the firm’s investment in Minera Juanicipio (vs. a $1.6M loss in 2Q18), and a deferred tax benefit of $0.2M in 2Q19 (vs. a $1.3M expense in 2Q18). We note that the improved performance was despite 2Q19 expenses increasing by $0.7M, or 43% YoY, to $2.5M, mostly due to share-based payments growing by $0.9M or 215% YoY. the firm benefited from a $1.2M gain on the sale of its non-core Lagartos concessions to not rated) in exchange for 5.0M shares of the firm.”
According to TipRanks.com, Ihle is a 5-star analyst with an average return of 6.8% and a 50.2% success rate. Ihle covers the Basic Materials sector, focusing on stocks such as Solitario Exploration & Royalty, Americas Silver Corporation, and Golden Star Resources Ltd.
MAG Silver Corp has an analyst consensus of Moderate Buy, with a price target consensus of $16.50, implying a 37.4% upside from current levels. In a report issued on July 31, PI Financial also reiterated a Buy rating on the stock.
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Based on MAG Silver Corp’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $961K. In comparison, last year the company had a GAAP net loss of $2.75 million.
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MAG Silver Corp. engages in the exploration, acquisition, and development of mineral properties. It focuses on silver projects located in the Mexican Silver Belt including Juanicipio and Cinco de Mayo in Mexico. The company was founded on April 21, 1999 and is headquartered in Vancouver, Canada.
